Assume that Peggy Gyger, accounts payable clerk for Patmen Inc., stole $193,750 by paying fictitious invoices for

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Assume that Peggy Gyger, accounts payable clerk for Patmen Inc., stole $193,750 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the name of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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