The following lettered items are some “suspicions,” and you have been requested to select some effective procedures designed to con-firm or repudiate the suspicions.
a. The custodian of the petty cash fund may be removing cash on Friday afternoon to pay for weekend activities.
b. A manager noticed that eight new vendors had been added to the purchasing department’s approved list after the assistant purchasing agent was promoted to purchasing manager three weeks ago. The manager suspects all or some of them might be fictitious companies set up by the new purchasing manager.
c. The payroll supervisor may be stealing unclaimed paychecks of people who quit work and do not pick up the last check.
d. Although no customers have complained, cash collections on accounts receivable are down. The counter clerks may have stolen customers’ payments.
e. The cashier may have “ borrowed” money, covered it by holding each day’s deposit until cash from the next day(s)’ s collection is enough to make up the shortage from an earlier day, and then send the deposit to the bank.

Write the suggested procedures for each case in definite terms so another person will know what to do.

  • CreatedOctober 27, 2014
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