Problem 7-11

Crime and Controls

From the

QuickBooks

Student Problems and Cases book:

Problem 7-11

A.

Attempt to delete the accounts receivable

Room Addition account for Jason Burch

(Delete Customer: Job). What is the message on the window after you answer that you want to delete it? Why does that control exist?

Problem: QuickBooks cannot delete this name because it has a balance or it is used

in at least one transaction. This control exists to avoid deleting any pertinent financial data/transactions needed for a given period, especially if the customers has an outstanding balance.

B.

Elizabeth Mason is responsible for processing

All sales invoices. Explain why she is likely to need access to accounts receivable maintenance.

Once the sales invoice is created, access to the Accounts Receivable maintenance is

Necessary to ensure proper information is recorded for the payment thats due to the company at a future date.

C.

Explain why it is desirable to deny Elizabeth access to processing cash receipt transactions, processing credit memos, and processing general journal transactions.

Since Elizabeths primary responsibility is to create sales invoices, it is desirable to

deny her access as indicated because of the need to maintain a separation of duties.

If she had such access, she would also be able to manipulate further transactions

With the potential to result in fraudulent activities, such as embezzlement.

D.

Elizabeth Mason has entered all information needed to process a sales invoice for

Heather Campbell and has clicked the Save button in the Create InvoicesAccounts

Receivable window. List seven types of information that are automatically prepared

or updated as a result of the activity.

Note: There are many items in reports including those in Company & Financial,

Customers & Receivables, Sales, and Accountant & Taxes.

1.

Example: Customer Balance detail for Heather Campbell is updated

2.

Transactions List

3.

Open Invoices

4.

A/R Aging Detail

5.

Customer Summary