Arjun Samji owns apartment buildings in Ontario. Each property has a manager who collects rent, arranges for

Question:

Arjun Samji owns apartment buildings in Ontario. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in the local newspaper. The property managers transfer cash to Samji monthly and prepare their own bank reconciliations.
The manager in Hamilton has been stealing large sums of money. To cover the theft, she understates the amount of outstanding cheques on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the reports more cash than Samji actually has in the bank. In negotiating the sale of the Hamilton property, Samji is showing the to prospective investors.
Required
1. Identify two parties other than Samji who can be harmed by this theft. In what ways can they be harmed?
2. Discuss the role accounting plays in this situation.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...