Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Critical Thinking Activity Each department of CanAsian Airlines operates and man- ages its own petty cash fund to cover the cost of incidental office-related expenses.

image text in transcribed
image text in transcribed
Critical Thinking Activity Each department of CanAsian Airlines operates and man- ages its own petty cash fund to cover the cost of incidental office-related expenses. In your department, Guy has been delegated the responsibility of maintaining this fund. As his supervisor, you are authorized to sign the requisition that is sent to the accounting department at the end of each month to replenish the fund. Over the past few months, you have observed Guy opening the petty cash box and giving what appear to be small amounts to various individuals in the office. When you review the requests to replenish the fund, however, you notice that the requisition has no reference to these persons; nor are petty cash vouchers signed by these individuals included with the requisition. The policy and procedures manual, given to all new CanAsian employees, has a section on maintaining the fund. It states clearly that these monies are to be used only for office-related expenses. While you have every confidence in Guy's ethics and integrity, and in his ability to maintain this fund, you suspect that Guy has been advancing monies to these individuals for personal use. How will you raise this issue with Guy? What questions will you ask him? What directions could you provide to help him resolve this issue

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

Step: 3

blur-text-image

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

Value Based Management For Accounts Receivable

Authors: Kimberly Don Ketron

1505911184, 978-1505911183

More Books

Students also viewed these Accounting questions

Question

What will you do or say to Anthony about this issue?

Answered: 1 week ago