Question

may someone help me? and please no solution fro the manuall solution

thanks

REQUIRED 77 The information you have obtained suggests potential problems relating to Go-Go's internal environment. Identify the problems, and explain them in relation to the internal environment concepts discussed in this chapter. Explain how the principle of separation of duties is violated in each of the following situations. Also, suggest one or more procedures to reduce the risk and exposure high- lighted in each example. 2. A payroll clerk recorded a 40-hour work-week for an employee who had quit the previous week. He then prepared a paycheck for this employee, forged her signature, and cashed the check. b. While opening the mail, a cashier set aside, and subsequently cashed, two checks payable to the company on account. c. A cashier prepared a fictitious invoice from a company using his brother-in-law's name. He wrote a check in payment of the invoice, which the brother-in-law later cashed. d. An employee of the finishing department walked off with several parts from the storeroom and recorded the items in the inventory ledger as having been issued to the assembly denartment

Answer 1

(a) In the given case, it is clear that there is no demarcation for duties to be performed by the employees in the entity, as the cashier and book keeper is the same person in the given case.

To mitigate the risk, the system must block making changes to the Quit employees account until a middle level manager authorizes it, and also the cashier and book keeper has to be kept different.

(b) Again as the book keeper and cashier and the Accounts receivable executive is the same person , it is violating the principle of seperation of duties.

Accordingly to mitigate the risk, the duties have to be given for different persons and also the Management is adviced to accept online payments, and reduce the usage of cash and Cheques as far as possible.

(c) Again as the Accounts payable executive and cashier are same in the given case, violating the priniciple of seperation of duties.

To mitigate this risk, it is important that the make payment notice is made by atleast middle level management, and also the invoice has to be checked in the generation stage itself for it's genuinity by the Book keper by cross referring it to purchase order or some other requisition available.

(d)The same employee is handling both the recording and execution part of the same transactions, for different departments, hence violating the principle of seperation of duties.

To mitigate this risk the stores department has to transfer the items to another department, or the company could apply Just in Time approach altogether, as per which the entity need not have to handle material in it's stores. It could also take help of Kan ban card or balanced score card approach, as per which the production is done only after the card asks to go through next step of production.