1.
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 Discuss: A control feature that the Company GB can use to safeguard against the fraud identified above.
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Chapter 11 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage