Fundamentals of Financial Accounting
5th Edition
ISBN: 9781259140259
Author: PHILLIPS
Publisher: MCG
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Chapter 5, Problem 5.1E
Identifying Internal Control Principle and Financial Reporting Control Objective
At most movie theaters, one employee sells tickets and another employee collects them. One night, when you’re at the movies, your friend comments that this is a waste of the theater’s money.
Required:
- 1. Identify the name of the control principle to which this situation relates.
- 2. Explain to your friend what kind of fraud could occur if the same person did both jobs.
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Chapter 5 Solutions
Fundamentals of Financial Accounting
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