Decision Case Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees. To Identify: One way that a supervisor can defraud Company GB under the present system.

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Answer 1

Question

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

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Answer 2

Question

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

Answer 6

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

Answer 7

Chapter 11, Problem 11.1CTDC

1.

To determine

Decision Case

Case Summary: B is the owner of the GB construction company that employs 15 work crews. Supervisors directly report to B and are considered trusted employees. The home office is consists of one accountant and one office manager. Supervisors have authority to hire and fire crew but notify changes to home office and forward W-4 forms to home office. Each Thursday supervisors submit the weekly time sheet, on Friday collect the checks and distributes to the workers. The accountant prepares the checks and signed by the B. The accountant verifies the signatures of the workers on the back of the checks and W-4 forms to confirm the bona fide employees.

To Identify: One way that a supervisor can defraud Company GB under the present system.

Answer 8

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

Answer 9

2.

To determine

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

Solution Summary: The author explains how a supervisor can defraud Company GB by entering bogus name in the weekly time sheet and submitting the W-4 form to the home office with forged signature.

To Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.

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Chapter 11 Solutions