Name three courses of action that the owners could pursue if Jeff Smith was found.Provide a reason in favor of and against each course of action

Jeff was given quite a bit of responsibility within the company.As a result, adequate segregation of duties was not achieved.Name five tasks that Jeff was responsible for and apply the specific duty that the tasks relates to (refer to slide 24 of Chap 6 & 7 PPT notes for the three duty categories).Segregation of duties- one person should never be responsible for two of the following three duties

Authorization of transactions or other events - approval obtained for a transaction or event

Custody of assets - who has physical access to the assets of an organization

Record keeping and modification of related data and program files - who has the ability to record journal entries or modify data and program files

From the tasks and duties noted above, list three potential events that could happen from one person having that much responsibility.

MGA 311 - Accounting Information Systems Assignment #2 Fall 2017 Professor Metzger Point Value: 25 Points Assignment Type: Individual Home Electronics & Car Audit Store Chain Case Joe and Mary Gray started their multimillion-dollar home electronics and car audio store chain in Texas in the late 1970s. By mid-1983, their company had grown to 10 stores in 3 states with 500 employees and gross sales of $30 million. The decline of the oil industry in the mid-1980s led to the company losing almost half of their employees. Additionally, as people moved to more economically viable states, employee turnover continued to increase. During this time, the Grays needed to fill a recently vacated Controller position in their main office. The position was crucial and required a person who was highly motivated and knowledgeable of operations. After interviewing several candidates, they decided to give Jeff Smith the position. Jeff was nothing like the previous Controller. He was quickly labeled a \"maverick\" and was completing tasks that had been languishing for months. Many of the employees noticed Jeff in the office working early in the morning, late at night, and on weekends. On many occasions, Jeff stayed at the office all night and through the next day. He was eager to fill in for people away from the office due to illness, vacation, or business travel. He was improving the efficiency of the office and the Grays were elated at his performance. Within six months of Jeff's arrival, the Grays expanded the Controller duties to include many office operations, and transferred these responsibilities to Jeff. Jeff's charismatic personality and work ethic motivated many in the office to improve their work habits and efforts. The general consensus was that Jeff was an \"inspired\" choice for the position and had brought about a complete renewal of the business. Approximately one year after Jeff was hired, Joe Gray noticed some anomalies after completing the physical inventories and year-end closing of the books. He met with Jeff on numerous occasions to try to resolve the discrepancies, but to no avail. Jeff and Joe worked on identifying the anomalies for about a month, meeting at the main office one Sunday afternoon to continue their search. Only Jeff and Joe were in the office that day. They took advantage of Joe's extra-long meeting table to lay out all of the ledgers and journals on the table in preparation for their search. After several hours, Joe began to make headway for the first time that afternoon. Jeff excused himself to take a smoking break while Joe continued to close in on the problem. Twenty minutes went by and Joe noticed that Jeff had not yet returned. He waited a few minutes and then went to see where Jeff had gone. Not finding him anywhere in the building, Joe checked outsideJeff's car was gone. Joe tried to call Jeff's house later that day, but there was no answer. The following day, Jeff did not show up for work. Joe tried to contact him again at home, but he had moved, leaving no forwarding address. As it turned out, Jeff had a long history of embezzling from companiespolice and federal agencies had been looking for him for some time. Some of the ways Jeff was able to steal over $2 million included: Printing checks and making the necessary reversing entries and using backup files to cover his tracks. Setting himself up as a vendor with a P.O. Box address, with checks mailed to that address every few weeks. The amounts on the checks were small, so they did not require a second signature. MGA 311 - Accounting Information Systems Assignment #2 Fall 2017 Professor Metzger Jeff handled the cash collections, disbursements, and account reconciliations. Jeff was able to divert some of the checks received as payments on invoices by using the company's check endorsement stamp, signing the checks over to himself, and depositing them in his personal account. When Joe came too close to the truth that Sunday afternoon, Jeff realized he was caught and left town. The authorities were contacted, but Jeff got away one more time by befriending everyone, having exemplary performance for the time he was with the company, and gaining everyone's trusthe was the \"perfect employee.\" In a 1-2 page Word document (no other file format will be accepted), answer the following questions in bullet format: 1. Jeff was given quite a bit of responsibility within the company. As a result, adequate segregation of duties was not achieved. Name five tasks that Jeff was responsible for and apply the specific duty that the tasks relates to (refer to slide 24 of Chap 6 & 7 PPT notes for the three duty categories). 2. From the tasks and duties noted in #1 above, list three potential events that could happen from one person having that much responsibility. 3. Name three internal controls that should have been in place to prevent the segregation of duties issues noted in #1. Be as specific as possible. 4. Name three courses of action that the owners could pursue if Jeff Smith was found. Provide a reason in favor of and against each course of action. Required Deliverables to be submitted: 1. UBlearns Submission: a. Word file with the completed requirements above submitted via UBlearns. NOTE: This assignment will be reviewed using the University's SafeAssign software, which will scan for plagiarism against other students and other sources. Therefore, you will need to check the box as shown in the picture below. If you submit your assignment without checking the box, you risk receiving a grade of zero on the assignment. This is an individual assignment, therefore it is expected that you will submit your own, original work product. Students who submit identical or partially identical work products will receive a grade of zero. Please note: assignments MUST be submitted by the 9am on the due date. Refer to the class calendar for the due date. Late assignments will not be accepted