Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 3, Problem 3P
a.
To determine
Discuss the reason for which the SS left his job within one month.
b.
To determine
Discuss the controls that B & A could implement to prevent the company from fraud.
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MAIL ROOM FRAUD AND INTERNAL CONTROLSarat Sethi, a professional criminal, took a job as a mail room clerk at Benson &Abernathy and Company, a large department store. The mail room was an extremelyhectic work environment consisting of a supervisor and 45 clerks. The clerks wereresponsible for handling promotional mailings, catalogs, and interoffice mail, as wellas receiving and distributing a wide range of outside correspondence to variousinternal departments. One of Sethi’s jobs was to open cash receipts envelopes fromcustomers making payments on their credit card balances. He separated theremittance advices (the bills) and the checks into two piles. He then sent remittanceadvices to the AR department, where the customer accounts were updated to reflectthe payment. He sent the checks to the cash receipts department, where they wererecorded in the cash journal and then deposited in the bank. Batch totals of cashreceived and accounts receivable updated were reconciled each night to…
Sarat Sethi, a professional criminal, took a job as a mail room clerk at Benson & Abernathy and Company, a large department store. The mail room was an extremely hectic work environment consisting of a supervisor and 45 clerks. The clerks were responsible for handling promotional mailings, catalogs, and interoffice mail, as well as receiving and distributing a wide range of outside correspondence to various internal departments.One of Sethi’s jobs was to open cash receipts envelopes from customers making payments on their credit card balances. He separated the remittance advices (the bills) and the checks into two piles. He then sent remittance advices to the accounts receivable department, where the customer accounts were updated to reflect the payment. He sent the checks to the cash receipts department, where they were recorded in the cash journal and then deposited in the bank. Batch totals of cash received and accounts receivable updated were reconciled each night to ensure…
Sarat Sethi, a professional criminal, took a job as a mail room clerk at Benson & Abernathyand Company, a large department store. The mail room was an extremely hectic workenvironment consisting of a supervisor and 45 clerks. The clerks were responsible forhandling promotional mailings, catalogs, and interoffice mail, as well as receiving anddistributing a wide range of outside correspondence to various internal departments.One of Sethi’s jobs was to open cash receipts envelopes from customers making paymentson their credit card balances. He separated the remittance advices (the bills) and thechecks into two piles. He then sent remittance advices to the accounts receivabledepartment, where the customer accounts were updated to reflect the payment. He sentthe checks to the cash receipts department, where they were recorded in the cash journaland then deposited in the bank. Batch totals of cash received and accounts receivableupdated were reconciled each night to ensure that…
Chapter 3 Solutions
Accounting Information Systems
Ch. 3 - What is ethics?Ch. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - What are the three ethical principles that may...Ch. 3 - What is computer ethics?Ch. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - What are the computer ethical issues regarding...Ch. 3 - What are the computer ethical issues regarding...
Ch. 3 - What are the computer ethical issues regarding...Ch. 3 - Prob. 12RQCh. 3 - What are the computer ethical issues regarding the...Ch. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - What are the computer ethical issues regarding...Ch. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Name the three fraud-motivating forces.Ch. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - What is lapping?Ch. 3 - Prob. 25RQCh. 3 - What is bribery?Ch. 3 - What is economic extortion?Ch. 3 - Prob. 28RQCh. 3 - Define check tampering.Ch. 3 - What is billing (or vendor) fraud?Ch. 3 - Prob. 31RQCh. 3 - Prob. 32RQCh. 3 - Prob. 33RQCh. 3 - Prob. 34RQCh. 3 - Prob. 35RQCh. 3 - Prob. 36RQCh. 3 - Prob. 37RQCh. 3 - Prob. 38RQCh. 3 - Prob. 39RQCh. 3 - Prob. 40RQCh. 3 - Prob. 41RQCh. 3 - Give one example of an error that a check digit...Ch. 3 - Prob. 43RQCh. 3 - Prob. 44RQCh. 3 - What is the objective of a transaction log?Ch. 3 - Prob. 46RQCh. 3 - Prob. 47RQCh. 3 - Prob. 48RQCh. 3 - Prob. 49RQCh. 3 - Prob. 50RQCh. 3 - Distinguish between ethical issues and legal...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - The estimates of losses annually resulting from...Ch. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Distinguish between exposure and risk.Ch. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 19DQCh. 3 - Prob. 20DQCh. 3 - Prob. 21DQCh. 3 - Prob. 22DQCh. 3 - Prob. 23DQCh. 3 - Prob. 24DQCh. 3 - Prob. 25DQCh. 3 - Prob. 26DQCh. 3 - Prob. 27DQCh. 3 - Prob. 28DQCh. 3 - Explain the problems associated with inappropriate...Ch. 3 - Prob. 30DQCh. 3 - Prob. 31DQCh. 3 - Prob. 32DQCh. 3 - Prob. 33DQCh. 3 - Prob. 34DQCh. 3 - Prob. 35DQCh. 3 - Prob. 36DQCh. 3 - Prob. 37DQCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 12MCQCh. 3 - Which of the following controls would best prevent...Ch. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - The fraud scheme that is similar to the concept of...Ch. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - FRAUD SCHEME - HEALTH INSPECTOR A city health...Ch. 3 - FRAUD SCHEME PURCHASING AGENT A purchasing agent...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - EXPENSE ACCOUNT FRAUD While auditing the financial...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20P
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