Review References Aa A Mailings A Choe Discussion Cases Questions 2020 0301 View E 21 Abcdte AtoCode AaBbceD ABCDE Heading1 Heading 2 A Case 2 - Fraud in Your Small Business You are the owner of a propane gas distributor in a small Midwestern town. One of your accounting clerks is Dylan. Dylan has a brother Mike who is out of work, unemployed. Dylan has been helping Mike as best he can, but his salary as an accounting clerk is not enough to support two homes. By January, it was brrr.cold, and the brothers didn't have enough money to pay all of the bills. Mike needed propane delivered or he wouldn't be able to heat his home. Dylan decided to make an entry debiting Parts Inventory and crediting Accounts Receivable for Mike's account. The Parts Manager is your son, and as much as you love him and have tried to bring him along in the business, he is just not very good at his job. Dylan thought the Parts Manager would never notice the entry that he created to help his brother heat his home. Dylan made the same entry several times over the next few months. One day in the Spring, the Controller was randomly looking over the accounting records and noticed the unusual journal entries. When you, the owner, fired Dylan, you said that you wished he had come to you and told you about Mike's situation, that something could have been worked out. Questions: 5. In retrospect what did you as the owner do right? What did you do wrong? ChoB Discussion Cases Questions 2020 0301 View wout References Mailings Review A A A A E 21 Acte AaBbCcD ABCDE PAA 6. Why did you fire Dylan? What can a business like this do to prevent employee fraud of this kind? 17. What effect would Dylan's actions have on the balance sheet? The income statement? 8. How much discretion does a business have with regard to accommodating hardship situations? This document may not be posted or provide outside of this Blackboard course. Do not search the internet. Use what you learned from the text and resources on BB and MyLab Review References Aa A Mailings A Choe Discussion Cases Questions 2020 0301 View E 21 Abcdte AtoCode AaBbceD ABCDE Heading1 Heading 2 A Case 2 - Fraud in Your Small Business You are the owner of a propane gas distributor in a small Midwestern town. One of your accounting clerks is Dylan. Dylan has a brother Mike who is out of work, unemployed. Dylan has been helping Mike as best he can, but his salary as an accounting clerk is not enough to support two homes. By January, it was brrr.cold, and the brothers didn't have enough money to pay all of the bills. Mike needed propane delivered or he wouldn't be able to heat his home. Dylan decided to make an entry debiting Parts Inventory and crediting Accounts Receivable for Mike's account. The Parts Manager is your son, and as much as you love him and have tried to bring him along in the business, he is just not very good at his job. Dylan thought the Parts Manager would never notice the entry that he created to help his brother heat his home. Dylan made the same entry several times over the next few months. One day in the Spring, the Controller was randomly looking over the accounting records and noticed the unusual journal entries. When you, the owner, fired Dylan, you said that you wished he had come to you and told you about Mike's situation, that something could have been worked out. Questions: 5. In retrospect what did you as the owner do right? What did you do wrong? ChoB Discussion Cases Questions 2020 0301 View wout References Mailings Review A A A A E 21 Acte AaBbCcD ABCDE PAA 6. Why did you fire Dylan? What can a business like this do to prevent employee fraud of this kind? 17. What effect would Dylan's actions have on the balance sheet? The income statement? 8. How much discretion does a business have with regard to accommodating hardship situations? This document may not be posted or provide outside of this Blackboard course. Do not search the internet. Use what you learned from the text and resources on BB and MyLab
