The Smart Company employs 125 people, who are paid every two weeks. The accounting/payroll process is as
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The Smart Company employs 125 people, who are paid every two weeks.
- The accounting/payroll process is as follows:
- All employees except the top 5 administrators in the company must punch a time clock at the main building, before leaving and when returning, at the end of the day from different work sites.
- None of the 5 administrators are involved in the theft from the company's assets or money!!!
- The company has set-up a direct electronic payroll system with your bank of choice for your check to be deposited in.
- Copies of your check are provided to you and you must sign for the check copy.
- Payroll is done through accounting. Various people electronically send the transfer of funds to the various employee's banks.
- There is a tracking system in place.
- The company has conducted an audit. It has audited the books and has had every employee physically sign for the copy of their check.
- All payroll through the audit is accounted for.
- The payroll department also takes care of all vendor contracts.
- All work and inventory are on schedule and where it should be.
- The company is short $238,000.
Where did the money go? And who took it?
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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