Thursday, January 12, 2012

Accounting please help. yzing internal control.?

Bemis Company is a rapidly growing start-up business. Its recordkeeper, who was hired one year ago, left town after the company's manager discovered that a large sum of money had disappeared over the past six months. An audit disclosed that the recordkeeper had written and signed several checks made payable to her fianace and then recored the checks salaries expense. The fiance, who cashed the checks never worked for the company, left town with the recordkeeper. As a result, the company incurred and uninsured loss of $84,000. Evaluate Bemis internal control system and indicate with principles of internal control appear to have been igored.

0 comments:

Post a Comment