As an auditor, you have discovered the following problems with the accounting system of Jefferson Retailers. For
Question:
1. Jefferson Retailers’ 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 of the customers.
2. An accountant hid his theft of $200 from the company’s bank account by overstating outstanding checks on monthly reconciliation. He believed the manipulation would not be discovered.
3. Michael Meyer works in a storeroom. He maintains the inventory records, counts the inventory, and has unlimited access to the storeroom. He occasionally steals items of inventory and hides his thefts by overstating the physical inventory accounts.
4. Receiving reports are sometimes filled out days after shipments have arrived.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
Question Posted: