Question

One of your smaller clients has had to lay off one if its four employees in the accounting department. The owner of the business has asked for you help in re-assigning the remaining three employees' (Yasmine, Xavier, and Zoe) duties so that there is the least amount of fraud risk remaining as possible. Assign the following ten duties to each of the three employees.

NOTE: The best way to approach this type of problem is to think about separation of duties and what each employee should not be able to do.

1. Reconcile the bank statements.

2. Open the mail and list the incoming checks.

3. Prepare checks for the owner's signature.

4. Prepare payroll checks for the owner's signature.

5. Maintain personnel records.

6. Prepare daily deposits and take them to the bank.

7. Maintain petty cash.

8. Maintain the accounts receivable records.

9. Maintain the general ledger.

10. Reconcile the accounts receivable records to the general ledger A/R account.

Answer 1

Yasmine

5. Maintain personnel records.

7. Maintain petty cash.

8. Maintain the accounts receivable records.

9. Maintain the general ledger.

Xavier

2. Open the mail and list the incoming checks.

1. Reconcile the bank statements.

10. Reconcile the accounts receivable records to the general ledger A/R account.

Zoe

3. Prepare checks for the owner's signature.

4. Prepare payroll checks for the owner's signature.

6. Prepare daily deposits and take them to the bank.