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Due to limited staff resources, the Janet has been collecting cash from customers, posting to the accounts receivable sub-ledger and making the deposit to
Due to limited staff resources, the Janet has been collecting cash from customers, posting to the accounts receivable sub-ledger and making the deposit to the bank. Janet recently met with the Accounting manager to discuss and request a $5,000 raise in pay. The manager told Janet that he had a few concerns with Janet's performance but if these issues could be overcome he would revisit the raise in 3-months. Dissatisfied with the manager's response Janet stole $5,000 from the cash collected from customers. To cover her tracks, she cleared the customer's receivable from the sub-ledger by posting a debit to Cash and credit to accounts receivable; however, she never made the deposit and kept the funds for herself. Instructions How will the company discover that the $5,000 is missing? Discuss any 1 internal control weaknesses in this situation and how the company could avoid this type of fraud in the future.
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