Page 178 - Accounting Information Systems

CHAPTE R 3 Ethics, Fraud, and Internal Control 149

Required
CUSTOMER ACCOUNT PER
a. If you were asked to help this company, could you
MANUAL RECONSTRUCTION
conclude from the evidence presented that embezzle-
Dr. Cr. ment took place? What would you do next?
Sale 1 5,000 Pmt. #1 5,000 b. Who do you think was the embezzler?
Sale 2 5,000 Pmt. #2 5,000 c. How was the embezzlement accomplished?
Sale 3 5,000 Pmt. #3 5,000 d. What improvements would you recommend in
internal control to prevent this from happening
Sale 4 5,000
again? In answering this question, try to identify at
Ending Balance 5,000
least one suggestion from each of the six classes of
internal control activities discussed in this chapter
(in the Control Activities section): transaction au-
CUSTOMER ACCOUNT PER thorization, segregation of duties, supervision,
MANUAL RECONSTRUCTION accounting records, access control, and independent
verification.
Dr. Cr.
e. Would the fact that the records were maintained
Sale 1 5,000 Pmt. #1 5,000
on a microcomputer aid in this embezzlement
Sale 2 5,000 Pmt. #2 5,000
scheme?
Sale 3 5,000 Pmt. #3 5,000
Ending balance 0