As an auditor, you have discovered the following problems with the accounting system control procedures of Jims
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a. Jim’s Supply Store’s losses due to bad debts have increased dramatically over the past year. In an effort to increase sales, the managers of certain stores have allowed large credit sales to occur without review or approval.
b. An accountant hid his theft of $200 from the company’s bank account by changing the monthly reconciliation. He knew the manipulation would not be discovered.
c. Mark Peterson works in the storeroom. He maintains the inventory records, counts the inventory, and has unlimited access to the storeroom. He occasionally steals items of inventory and hides the theft by including the value of the stolen goods in his inventory count.
d. Receiving reports are sometimes filled out days after shipments have arrived.
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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