Mailings Renew View 1% 21 | AaBbccde AaBbccdc AaBb AaBbc AaBb ZA BEB E ! | Normal 1 No Spaci. Heading 1 Heading 2 Title Paragraph Styles 12031415161718 9 10 11 12 13 14 15 16 ACT2112 SEMESTER 1 2013/14 TUT 1 1. The ticket seller at a movie theater doubles as a ticket taker for a few minutes each day while the ticket taker is on a break. Which control procedure of a business's system of internal control is violated in this situation? 2. Assume that Julie, accounts payable clerk for ABC Bhd., stole RM110.000 by paying fictitious invoices for goods that were never received. The clerks set up accounts in the names of the fictitious companies and cash the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud. 3. Electro Co. discovered a fraud whereby one of its front office administrative employees used company funds to purchase goods, such as computers, digital cameras, compact disc players, and electronic items for her own use. The fraud was discovered when employees noticed an increase in delivery frequency from vendors and the use of unusual vendors. After some investigation, it was discovered that the employee would alter the description or change the quantity on an invoice in order to explain the cost on the bill. What general internal control weaknesses contributed to this fraud? The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies An employee from the cashier's office counts the cash, compare the total with the memo, and takes the cash to the cashier's office. N W County Modian oft Word Review View Mailings AR E . 21 AalbCcDc AabbccDc AaBb AaBbc AaBb Aa 1 Normal 1 No Spac. Heading 1 Heading 2 Title S Styles Paragraph 12+13456789101112 113 114 115 116 11 names or the niciuous companies ana casnine checks at a tocar bank. Describe a concor procedure that would have prevented or detected the fraud. 3. Electro Co. discovered a fraud whereby one of its front office administrative employees used company funds to purchase goods, such as computers, digital cameras, compact disc players, and electronic items for her own use. The fraud was discovered when employees noticed an increase in delivery frequency from vendors and the use of unusual vendors. After some investigation, it was discovered that the employee would alter the description or change the quantity on an invoice in order to explain the cost on the bill. What general internal control weaknesses contributed to this fraud? 4. The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. An employee from the cashier's office counts the cash compare the total with the memo, and takes the cash to the cashier's office. a. Indicate the weak link internal control b. How can the weakness be corrected? NW
