Question
A company you have been asked to examine as part of an AIS consulting engagement employs a cashier who handles all cash receipts from customers.
A company you have been asked to examine as part of an AIS consulting engagement employs a cashier
who handles all cash receipts from customers. The cashier counts the cash daily, prepares the bank deposit,
and carries the deposit to the bank every day after work. In addition, the cashier authorizes all discounts and
allowances and decides when uncollectible accounts will be written off. Finally, because the accounting
department is overworked at times, the cashier is allowed to post cash payments to customer accounts and
reconcile the bank account. Outline how a dishonest cashier could misuse all these responsibilities to steal
cash from the company.
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