A clerk embezzles customer payments on account and covers up the theft by making an adjustment...
A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.
Homework Answers
More than one control procedures could be implemented to prevent fraud in an organisation especially transactions in relation to cash. In this case, a billing system needs to be established which bills both credit sales and cash sales. Here, the duties are to be segregated among 2 people, one to prepare invoices/bills and one to collect payments. Finally the report of debtors/ creditors needs to be monitored regularly (on weekly/monthly) basis followed by surprise cash verification by the management.
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A clerk embezzles customer payments on account and covers up the
theft by making an adjustment...
2. State two specific functions or jobs that should be segregated in the sales processing system....
2. State two specific functions or jobs that should be segregated in the sales processing system. 3. State two specific functions or jobs that should be segregated in the cash receipts system. 4. For the revenue cycle, state two specific independent verifications that should be performed. What task can the accounts receivable department engage in to verify that all checks sent by the customers have been appropriately deposited and recorded? 6. What specific internal control procedure would prevent the sale...
a customer payment of $247 was correctly posted in general ledger but was recorded as $274...
a customer payment of $247 was correctly posted in general ledger but was recorded as $274 in the customer accounts receivable ledger. describe a specific internal control procedure that would prevent this fraud
the clerk who open the mail routinely steals remittances. describe a specific internal control procedure that...
the clerk who open the mail routinely steals remittances. describe a specific internal control procedure that would prevent or detect this fraud
a credit sale is made to a customer, even though the customer account is four months...
a credit sale is made to a customer, even though the customer account is four months overdue. describe a specific internal control procedure that would prevent this from happening
Pick one of the following and describe a control procedure. Basically, each one has more than...
Pick one of the following and describe a control procedure. Basically, each one has more than one control that can be implemented. What internal control procedure(s) would provide protection against the following threats? Theft of goods by the shipping dock workers, who claim that the inventory shortages reflect errors in the inventory records Posting the sales amount to the wrong customer account because a customer account number was incorrectly keyed into the system Making a credit sale to a customer...
Prepare the adjustment that the clerk would have made to record the NSF check. Increase or...
Prepare the adjustment that the
clerk would have made to record the NSF check. Increase or Decrease
which accounts
Following is a bank reconciliation for Zocar Enterprises for June 30, 2018. Cash Account $23,940 Bank Statement $20,095 4,875 (360) Balance as of 6/30/2018 Deposit in transit Outstanding checks Note collected by bank Bank service charge NSF check Adjusted cash balance as of 6/30/2018 2,035 (15) (1,350) $ 24,610 $24,610 As part of the normal process for handling an NSF check,...
what specific internal control procedure would prevent the sale of goods on account to a fictitious...
what specific internal control procedure would prevent the sale of goods on account to a fictitious customer ?
Gloria’s Fabrics is a large fabric provider to the general public. The accounting office has three...
Gloria’s Fabrics is a large fabric provider to the general public. The accounting office has three employees: accounts receivable clerk, accounts payable clerk, and a bookkeeper who manages the accounting function in the company. The accounts receivable clerk creates the sales invoices and records the cash receipts. The accounts payable clerk creates and pays purchase offers. The bookkeeper manages the accounting function, supervises all accounting office employees, and reconciles the checking account. Review the separation of duties for each employee:...
The Accounts payable clerk for manufacturing company receives a purchase order copy for raw materials from...
The Accounts payable clerk for manufacturing company receives a purchase order copy for raw materials from the purchasing agent. The clerk files the PO in a temporary file and awaits the vendor’s invoice before setting up a liability. A week later the clerk receives the vendors invoice, reconciles it with the PO, posts the liability to the AP Subsidiary ledger, and establishes a due date for payment. On the due date the clerk prepares a check for the invoiced amount...
Sales Order Processing System The customer sales order is received via phone or through the mail. Gus Grinwich, the sales clerk, receives the sales order and checks the customer’s credit record. Once...
Sales Order Processing System The customer sales order is received via phone or through the mail. Gus Grinwich, the sales clerk, receives the sales order and checks the customer’s credit record. Once Grinwich checks the customer’s credit record, he prepares the sales order. From this sales order, Grinwich prepares a customer copy, stock release, shipping notice, two copies of the invoice, ledger copy, packing slip, and the file copy. One of the invoice copies, the ledger copy, and the file...
2. State two specific functions or jobs that should be segregated in the sales processing system. 3. State two specific functions or jobs that should be segregated in the cash receipts system. 4. For the revenue cycle, state two specific independent verifications that should be performed. What task can the accounts receivable department engage in to verify that all checks sent by the customers have been appropriately deposited and recorded? 6. What specific internal control procedure would prevent the sale...
Prepare the adjustment that the
clerk would have made to record the NSF check. Increase or Decrease
which accounts
Following is a bank reconciliation for Zocar Enterprises for June 30, 2018. Cash Account $23,940 Bank Statement $20,095 4,875 (360) Balance as of 6/30/2018 Deposit in transit Outstanding checks Note collected by bank Bank service charge NSF check Adjusted cash balance as of 6/30/2018 2,035 (15) (1,350) $ 24,610 $24,610 As part of the normal process for handling an NSF check,...
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