Help please PROBLEMS connect All applicable Problems are ava

Help please.

PROBLEMS connect All applicable Problems are available in Connect. Problem 4-17 Required have prevented (or helped prevent) the problems. a. Everyone in the office has noticed what a dedicated employee Carley Trap is. She never misses bank Using internal controls to restrict illegal or unethical behavior mers ing to le for For each of the following fraudulent acts, describe one or more internal control procedures that could work, not even for a vacation. Trap is in charge of the petty cash fund. She transfers funds from the company\'s bank account to the petty cash account on an as-needed basis. During a surprise audit, the petty cash fund was found to contain fictitious receipts. Over a three-year period, Trap had eding used more than $4,000 of petty cash to pay for personal expenses. b. Doug Clampet was hired as the vice president of the manufacturing division of a corporation. His impressive resume listed a master\'s degree in business administration from a large state university and numerous collegiate awards and activities, when in fact Clampet had only a high school di ICPAPloma. In a short time, the company was in poor financial condition because of his inadequate knowledge and bad decisions c Stone Manufacturing has good internal control over its manufacturing materials inventory owever, office supplies are kept on open shelves in the employee break room. The office supervisor has noticed that he is having to order paper, tape, staplers, and pens with increasing frequency during

Solution

SOLUTION 4-17:-

A.1. an organisation must make sure that each and every record of transaction is recorded immediately in the books of accounts to ensure that there is no opportunity left for anyone to commit errors

2.clear and accurate recording of cash should take place and it sholud be reconciled regularly at several levels depending on the organisation at large.

3. in this situation it is seen that Mr Trap was working on the same duty for a long period , therefore he is familiar with all the concerned duties .An organisation should follow a practice of separation of duties to ensure ethical practices because if a particular employee became familiar with a particular job there are certain chances that he would team up with a another employee to commit fraud in an organisation.

B. in order to ensure that whether the stated information in a job resume is true and fair ,HR personnel resposible for screening up the interview should check the details of a candidate by contacting the references being mentioned in a job resume.HR personnel , in case have any doubts may double check the details by contacting the necessary educational institutions stated in the resume.

3 rather than the open shelf in an employee break room , limited access to a trusted employee should be given and CCTVs cameras can also be installed to reduce the chances of the theft of the materials.

SOLUTION4-23 FRAUD TRIANGLE:-

1. availability of an opportunity:-since sam has a strong professional image in the organisation and at times he exceeds his authority to fix the prices of the services so he got the opportunity to charge overprices to the customer and keep the extra profit with him.

2.since he is performing well in the organisation that motivates him to take a step to earn more even though the way he chosen is actually not ethical.

3.he is earning revenue for all other partners as well , therefore motivates him to get a consideration for his efforts.