What company policies or procedures would you recommend to prevent each of the following activities? a. A

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What company policies or procedures would you recommend to prevent each of the following activities?
a. A clerk at the Paul Yelverton Company faxes a fictitious sales invoice to a company that purchases a large quantity of goods from it. The clerk plans to intercept that particular payment check and pocket themoney.
b. The bookkeeper at a construction company has each of the three owners sign a different paycheck for her. Each check is drawn from a separate account of the company.
c. A clerk in the human relations department creates a fictitious employee in the personnel computer file. When this employee’s payroll check is received for distribution, the clerk takes and cashes it.
d. A clerk in the accounts receivable department steals $250 in cash from a customer payment, then prepares a computer credit memo that reduces the customer’s account balance by the same amount.
e. A purchasing agent prepares an invoice for goods received from a fictitious supplier. She sends a check for the goods to this supplier, in care of her mother’s post-office box.
f. A hacker manages to break into a company’s computer system by guessing the password of his friend—Champ, the name of the friend’s dog.
g. An accounts receivable clerk manages to embezzle more than $1 million from the company by diligently lapping the accounts every day for three consecutive years.
h. The company’s local area network administrator traces a virus to an individual who accidentally introduced it when he downloaded a computer game from the Internet.
i. A clerk at a medical lab recognizes the name of an acquaintance as one of those patients whose lab tests are ‘‘positive’’ for an infectious disease. She mentions it to a mutual friend, and before long, the entire town knows about it.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Core Concepts Of Accounting Information Systems

ISBN: 9780470507025

11th Edition

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

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