Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J Bieg, Judith A Toland

24th Edition

1285437063, 9781285437064

More Books

Students also viewed these Accounting questions

Question

Self-confidence

Answered: 1 week ago

Question

The number of people commenting on the statement

Answered: 1 week ago