BHIEE Co. is a small entity. It has total of 5 staff including the owner: 1 owner, 2 salesman, 1 accountant, and 1 receptionist. The owner invested his resources to the business. The salesmen oversee the main source of revenues of the Company. The accountant was able to approve payment of invoices and write company checks to a relative, with whom the accountant would split the proceeds. The accountant covered up the theft with journal entries in the accounting system. The receptionist does the general office work. As an operations auditor, which of the following recommendations best suits the situation above moving forward? choices A) BHIEE Co.’s owner should come up with staff’s code of conduct and hire an internal auditor to review compliance. B) BHIEE Co.’s owner should closely monitor the activities of its staff and the company’s operations. C) BHIEE Co.’s owner should hire additional staff to implement segregation of duties. D) BHIEE Co.’s owner should assign its general manager to be more effective and efficient in doing his job.
BHIEE Co. is a small entity. It has total of 5 staff including the owner: 1 owner, 2 salesman, 1 accountant, and 1 receptionist. The owner invested his resources to the business. The salesmen oversee the main source of revenues of the Company. The accountant was able to approve payment of invoices and write company checks to a relative, with whom the accountant would split the proceeds. The accountant covered up the theft with journal entries in the accounting system. The receptionist does the general office work. As an operations auditor, which of the following recommendations best suits the situation above moving forward? choices A) BHIEE Co.’s owner should come up with staff’s code of conduct and hire an internal auditor to review compliance. B) BHIEE Co.’s owner should closely monitor the activities of its staff and the company’s operations. C) BHIEE Co.’s owner should hire additional staff to implement segregation of duties. D) BHIEE Co.’s owner should assign its general manager to be more effective and efficient in doing his job.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance
Section: Chapter Questions
Problem 4CYBK
Related questions
Question
BHIEE Co. is a small entity. It has total of 5 staff including the owner: 1 owner, 2 salesman, 1 accountant, and 1 receptionist. The owner invested his resources to the business. The salesmen oversee the main source of revenues of the Company. The accountant was able to approve payment of invoices and write company checks to a relative, with whom the accountant would split the proceeds. The accountant covered up the theft with
As an operations auditor, which of the following recommendations best suits the situation above moving forward?
choices
A) BHIEE Co.’s owner should come up with staff’s code of conduct and hire an internal auditor to review compliance.
B) BHIEE Co.’s owner should closely monitor the activities of its staff and the company’s operations.
C) BHIEE Co.’s owner should hire additional staff to implement segregation of duties.
D) BHIEE Co.’s owner should assign its general manager to be more effective and efficient in doing his job.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning