Question

Topic: You are the owner of Trust Us Inc. Betty Favor, one of the organization's most trusted employees, has worked there for 15 years. She socializes with you on a regular basis. Recently, you hired a young new accountant who just graduated from college with honors in accounting. This new employee, John Asset, tells Betty that the bank statement does not reflect the same bank balance as the bank reconciliation that he just prepared.' Previously, Betty had taken care of all banking matters and prepared the bank reconciliations. Betty comes into your office and says it appears that John does not know what he is doing because there are errors on the bank reconciliation. She states that she redid the bank reconciliation to fix the error.Questions for that topic1/ Where is the division in the process? 2/ Who are the people of interest? The enablers? The detractors? 3/ Who are the responsible parties overseeing the business process * controls? 4/ What are the potential overlapping responsibilities that require a segrega- tion of duties with access to organizational value? 6/ What potential conflicts exist? 7/ What are the underlying assumptions? 8/ What skills are needed to employ or develop the fact- finding aspects of the case? 9/ What accounting principles and standards may have been violated? 10/ Have any laws been broken?This is same topic but i added more questions, please help me i try to understand them)

Answer 1

1.In this topic the division of process is the young employee's responsibility is to do the BRS and the Betty favor work is to review the work of the young accountant and guide the correct process to complete the work.

2. In this topice both the enablers and detractor both are interested because the young accountant has no experience so though he has knowledge and interest he cannot at first day itself cannot do the work perfect. and the detractor Betty favor is interested because she is working with our organisation for the last 15 years. for the sake of company's interest she is complaining. But need to guide her and remind her responsibilities.

3.Betty favor is the responsible for the business process or responsibilities because the young accountant at this stage of appointment he has a responsibility of preparation of books of accounts.

4.The overlapping responsibilities that require segregation: The responsiblity of monitoring of other employee work need to review and guide them and if they do wrong guide them the ways to correct it dont do their work. Every employee need to report their work done daily to the concerned authority so that analyse everyone work and if any duplication of work is done rectify it