Question: Identify the internal control principle that was violated in each of the following separate situations. Principle Violated Situations An employee requested merchandise be purchased, then

 Identify the internal control principle that was violated in each of

Identify the internal control principle that was violated in each of the following separate situations. Principle Violated Situations An employee requested merchandise be purchased, then approved the purchase request, and a. finally made payment to a fake supplier. The employee stole a considerable amount of money under this scheme. The recordkeeper left town after the owner discovered a large sum of money had disappeared. An b. audit found that the recordkeeper had written and signed several checks made payable to his fiance and recorded the checks as salaries expense. An employee stole thousands of dollars worth of equipment over many years. It took years for the company to discover the fraud because accounting records for equipment were rarely updated. C

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!