Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For our second discussion, please review the following fraud case Dylan worked for a propane gas distributor as an accounting clerk in a small Midwestern

image text in transcribed
For our second discussion, please review the following fraud case Dylan worked for a propane gas distributor as an accounting clerk in a small Midwestern town. Last winter, his brother Mike lost his job at the machine plant. In January, temperatures were sub-zero, and Mike had run out of money. Dylan saw that Mike's account was overdue, and he knew Mike needed another delivery to heat his ons home. He decided to credit Mike's account and debit the balance to the parts ng ring inventory because he knew the parts manager, the owner's son, was incompetent and would never notice the extra entry. Months went by, and Dylan repeated the process dent until an auditor ran across the charges by chance. When the owner fired Dylan, he said, "If you had only come to me and told me about Mike's situation, we could have worked something out" Requirements 1. What can a business like this do to prevent employee fraud of this kind? 2. What effect would Dylan's actions have on the balance sheet? The income statement? 3. How much discretion does a business have with regard to accommodating hardship situations

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

Accounting Information Systems

Authors: Ulric Gelinas, Richard Dull, Patrick Wheeler

10th Edition

113393594X, 9781133935940

More Books

Students also viewed these Accounting questions

Question

How do exemptions affect the amount of tax you will pay?

Answered: 1 week ago