1. Why do you need to undertake feasibility study? 2. Briefly discuss the various types of...

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1. Why do you need to undertake feasibility study? 2. Briefly discuss the various types of feasibility analysis. Jemma Swanson was a trustworthy employee of Blue Trust Bank. She was involved in everything. She worked as a teller, accounted for the cash at the other teller windows, and recorded many of the transactions in the accounting records. She was so loyal that she never took a day off, even when very sick. She routinely worked late to see that all the day's work was posted into the accounting records, and never took a day's vacation because they might need her at the bank. Aron and Sarah, CPAS, were hired to perform an audit, the first complete audit that had been done in several years. Johnson seemed somewhat upset by the upcoming audit, saying that everything had been properly accounted for and that the audit was a needless expense. When Aron and Sarah examined some of the bank's internal control procedures, the firm discovered problems. In fact, as the audit progressed, it became apparent that a large amount of cash was missing. Numerous adjustments had been made to customer accounts with credit memorandums, and many of the transactions had been posted several days late. In addition, there were numerous cash payments for "office expenses." When the audit was complete, it was determined that more than $100,000 of funds was missing or improperly accounted for. All fingers pointed to Swanson. The bank's president, who was a close friend of Swanson, was bewildered. How could this type of thing happen at this bank? Required Prepare a written memo to the bank president, outlining the procedures that should be followed to prevent this type of problem in the future. 1. Why do you need to undertake feasibility study? 2. Briefly discuss the various types of feasibility analysis. Jemma Swanson was a trustworthy employee of Blue Trust Bank. She was involved in everything. She worked as a teller, accounted for the cash at the other teller windows, and recorded many of the transactions in the accounting records. She was so loyal that she never took a day off, even when very sick. She routinely worked late to see that all the day's work was posted into the accounting records, and never took a day's vacation because they might need her at the bank. Aron and Sarah, CPAS, were hired to perform an audit, the first complete audit that had been done in several years. Johnson seemed somewhat upset by the upcoming audit, saying that everything had been properly accounted for and that the audit was a needless expense. When Aron and Sarah examined some of the bank's internal control procedures, the firm discovered problems. In fact, as the audit progressed, it became apparent that a large amount of cash was missing. Numerous adjustments had been made to customer accounts with credit memorandums, and many of the transactions had been posted several days late. In addition, there were numerous cash payments for "office expenses." When the audit was complete, it was determined that more than $100,000 of funds was missing or improperly accounted for. All fingers pointed to Swanson. The bank's president, who was a close friend of Swanson, was bewildered. How could this type of thing happen at this bank? Required Prepare a written memo to the bank president, outlining the procedures that should be followed to prevent this type of problem in the future.

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Purpose of a feasibility study A feasibility study is designed to answer whether a particular project or idea should go ahead by deciding whether a pr... View the full answer