Mark Kershey, a former Smucker employee, was charged with defrauding the JM. Smucker Company of more than $4.1 million over a 16-year period. Charges were filed in October 2014. In 2015, Kershey was sentenced to nearly five years in prison. (Click the icon to view additional information) Read the requirements Requirement 1. What internal controls could have been used to prevent Kershey from carrying out the false billing scheme? Kershey should not have been allowed to approve the invoices An annual independent audit by might possibly select some of these invoices for inspection and verification The internal audit department at Smucker should audit off-site employees. There should have been separation of duties the company's CPA Requirement 2. What factors might have contributed to the weak internal control environment that allowed this scheme to exist for 16 years? (If an input field is not used in the table, leave the field empty, do not select an answer.) Lack of: job rotation proper approvals

Mark Kershey, a former Smucker employee, was charged with defrauding the JM. Smucker Company of more than $4.1 million over a 16-year period. Charges were filed in October 2014. In 2015, Kershey was sentenced to nearly five years in prison. (Click the icon to view additional information) Read the requirements Requirement 1. What internal controls could have been used to prevent Kershey from carrying out the false billing scheme? Kershey should not have been allowed to approve the invoices An annual independent audit by might possibly select some of these invoices for inspection and verification The internal audit department at Smucker should audit off-site employees. There should have been separation of duties the company's CPA Requirement 2. What factors might have contributed to the weak internal control environment that allowed this scheme to exist for 16 years? (If an input field is not used in the table, leave the field empty, do not select an answer.) Lack of: job rotation proper approvals

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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