Joe Bern, the cash disbursements clerk of Red Company, has full authority in paying invoices and issuing checks. He is also responsible about performing the end of month bank reconciliation. He writes a check for himself in the amount of an invoice, and then cancels the check originally written to pay for the invoice. He cashes the check for himself. After few weeks, he writes a second check and records it in the cash disbursements journal and then deposits the check. He then files it with all other paid invoices. Joe has been following this practice successfully for several years and feels confident that he has developed a foolproof method to earn some extra income.

The following action by Joe " has been following this practice successfully for several years and feels confident that he has developed a foolproof method to earn some extra income." is a violation of internal control in : *

- Accounting records

- Segregation of duties

- Not a violation of internal control

- Independent verification

The following action by Joe "has full authority in paying invoices and issuing checks. He is also responsible about performing the end of month bank reconciliation." is a violation of internal control in : *

Not a violation of internal control

Accounting records

Access control

Segregation of duties

The fraud type would be: *

Personal Fraud

Management Fraud

Employee Fraud

Corporate Fraud

The fraud would be considered as: *

Asset misappropriation

Bribery

Fraudulent statements

Economic Extortion

The following action by Joe "He writes a check for himself in the amount of an invoice, and then cancels the check originally written to pay for the invoice. He cashes the check for himself " is a violation of internal control in : *

Accounting Records

Segregation of duties

Supervision

Not a violation of internal control