CASE PROBLEM IBriefly describe what risks will occur if the following procedures occur in a company:The credit manager, in addition to having the authority to authorize the write-off of accounts receivable journal, can also receive the money from the collection of accounts receivable.In a supermarket, when the cashier changes shift 1 to shift 2, there is no daily cash accountability procedure for the cashier to the store manager. The second shift cashier simply continues the work of cashier shift 1. Likewise the next day, cashier shift 1 will continue the work of cashier shift 1. On Friday, all cash will be deposited into the bank by the cashier who works on that day. FileToolsViewDocument7 - Word (Product Activation Failed)Document5 *Document6wE Document7 *CASE PROBLEM IBriefly describe what risks will occur if the following procedures occur in a company:The credit manager, in addition to having the authority to authorize the write-offof accounts receivable journal, can also receive the money from the collection ofaaccounts receivable.b. In a supermarket, when the cashier changes shift 1 to shift 2, there is no daily cashaccountability procedure for the cashier to the store manager. The second shiftcashier simply continues the work of cashier shift 1. Likewise the next day, cashiershift 1 will continue the work of cashier shift 1. On Friday, all cash will be depos-ited into the bank by the cashier who works on that day.End of document IScreen 1 of 1--100%

Answered: Briefly describe what risks will occur…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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CASE PROBLEM I

Briefly describe what risks will occur if the following procedures occur in a company:

The credit manager, in addition to having the authority to authorize the write-off of accounts receivable journal, can also receive the money from the collection of accounts receivable.
In a supermarket, when the cashier changes shift 1 to shift 2, there is no daily cash accountability procedure for the cashier to the store manager. The second shift cashier simply continues the work of cashier shift 1. Likewise the next day, cashier shift 1 will continue the work of cashier shift 1. On Friday, all cash will be deposited into the bank by the cashier who works on that day.

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Tools
View
Document7 - Word (Product Activation Failed)
Document5 *
Document6
wE Document7 *
CASE PROBLEM I
Briefly describe what risks will occur if the following procedures occur in a company:
The credit manager, in addition to having the authority to authorize the write-off
of accounts receivable journal, can also receive the money from the collection of
a
accounts receivable.
b. In a supermarket, when the cashier changes shift 1 to shift 2, there is no daily cash
accountability procedure for the cashier to the store manager. The second shift
cashier simply continues the work of cashier shift 1. Likewise the next day, cashier
shift 1 will continue the work of cashier shift 1. On Friday, all cash will be depos-
ited into the bank by the cashier who works on that day.
End of document I
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Expert Solution

Step 1 (Part 1)

A credit manager is a person who is appointed by the company in order to set terms of payments from customers, setting credit levels, taking risks, etc.

If in addition to the above role, if credit managers also have the authority to write off accounts receivables and collect money from accounts receivables.

Under this situation, employees are more prone to commit fraud due to an increase in work pressure and too many responsibilities provided. It can also lead to system attacks, it means when employees manipulate the system data.

Prevention:-

The company should follow an effective internal control system and work pressure should also be divided among the team. Management should also be accountable for their work.

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