A company has been experiencing theft of cash from their cash register over the past month. After
Question:
A company has been experiencing theft of cash from their cash register over the past month. After conducting an investigation, the forensic accountant has determined that the total amount of cash stolen is $10,000. The company has a surveillance system that recorded the register transactions during the time period of the theft. Based on the surveillance footage, it is estimated that the average daily sales during the time period of the theft was $5,000.
a) If the company has a gross profit margin of 40%, what is the estimated cost of goods sold during the time period of the theft?
b) If the theft occurred over a period of 20 days, what is the estimated daily cash theft?
c) Based on the estimated daily cash theft, how many days does it appear that the employee was stealing from the cash register?
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston