MUSA, a small business owner hired his best friend MOUKHTAR to work as his accountant. MOUKHTAR...
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MUSA, a small business owner hired his best friend MOUKHTAR to work as his accountant. MOUKHTAR was given full unlimited access to all aspects of the business and was completely responsible for the accounting. Five years later, MUSA finally terminated MOUKHTAR because the business was not profitable. Upon taking over the accounting, the owner's wife SADIYA found that cash receipts from customers were twice the amounts formerly recorded by the accountant "friend" MOUKHTAR. An investigation revealed that MOUKHTAR had stolen N900,000 in cash sales receipts from the business, while the owner MUSA had never made more than N32,000 a year. (The friend had even used the stolen money to make loans to the owner and to keep the business going!) REQUIRED: MUSA had known you to be an astute Professional accountant and now approached you for advice. Explain what Musa should do to address this problem and also tell him why MOUKHTAR succeeded in defrauding him to that magnitude. (10 Marks) MUSA, a small business owner hired his best friend MOUKHTAR to work as his accountant. MOUKHTAR was given full unlimited access to all aspects of the business and was completely responsible for the accounting. Five years later, MUSA finally terminated MOUKHTAR because the business was not profitable. Upon taking over the accounting, the owner's wife SADIYA found that cash receipts from customers were twice the amounts formerly recorded by the accountant "friend" MOUKHTAR. An investigation revealed that MOUKHTAR had stolen N900,000 in cash sales receipts from the business, while the owner MUSA had never made more than N32,000 a year. (The friend had even used the stolen money to make loans to the owner and to keep the business going!) REQUIRED: MUSA had known you to be an astute Professional accountant and now approached you for advice. Explain what Musa should do to address this problem and also tell him why MOUKHTAR succeeded in defrauding him to that magnitude. (10 Marks)
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Related Book For
Business Statistics A First Course
ISBN: 9780321979018
7th Edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan
Posted Date:
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