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Please help with Q#3 and #4. Marge Page, Daisy Tu, and Colleen Walker work for a dentist, Dr. Linda Thomson, who is in a private
Please help with Q#3 and #4. Marge Page, Daisy Tu, and Colleen Walker work for a dentist, Dr. Linda Thomson, who is in a private practice. Dr. Thomson is fairly knowledgeable about sound office management practices and has separated the cash receipt duties as follows. Marge opens the mail and prepares a triplicate list of money received. She sends one copy of the list to Daisy, the cashier, who deposits the receipts daily in the bank. Colleen, the recordkeeper, also receives a copy of the list and posts payments to patients' accounts. About once a month the office clerks decide to have an expensive lunch compliments of Dr. Thomson. Daisy endorses a patient's cheque in Dr. Thomson's name and cashes it at the bank. Marge destroys the remittance advice accompanying the cheque. Colleen posts the payment to the customer's account as a miscellaneous credit. The clerks justify their actions given their relatively low pay and knowing that Dr. Thomson will likely never miss the payment. Required 1. Who would be the best person in Dr. Thomson's office to reconcile the bank statement? 2. Would a bank reconciliation detect the office fraud scheme? 3. What are some ways of uncovering this type of scheme? 4. Suggest additional internal controls that Dr. Thomson might want to implement
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