Journal entries and adjusting journal entries can be used to conceal theft of company assets as well as to inflate a company’s profits or deflate company losses. One of the biggest bankruptcies and biggest accounting scandals in the United States occurred at a company called WorldCom. To hide falling profitability, WorldCom recorded expenses as investments, which increased its profits by the amount of the expenses that were capitalized. To hide the theft of supplies, an employee might hide the theft by making an adjusting entry to cover up the supplies taken. Suppose a company purchases supplies during the period of $10,000 and actually has $5,000 of supplies on hand at the end of the period. If an employee steals $2,000 of supplies, to cover it up the employee makes an adjusting journal entry debiting Supplies Expense for $7,000 (instead of $5,000) and credits Supplies for $7,000 (instead of $5,000). The commission of fraudulent accounting crime by WorldCom and several other companies led to the passage of the Sarbanes-Oxley Act in 2002. The Sarbanes-Oxley Act (discussed in Chapter 1) strengthened accounting disclosure requirements and significantly increased penalties for fraudulent accounting. To prevent journal entry fraud, what are some basic internal control procedures for recording journal entries (including adjusting journal entries) that should exist in every company?