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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

An asset's book value is $19,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,000, the company should record: a. A loss on sale of $3,000. b. Neither a gain nor a loss is recognized in this type of transaction. c. A gain on sale of $3,000. d. A gain on sale of $3,000. e. A loss on sale of $3,000.

I want answer

On December 31, Strike Company decided to sell one of its batting cages. The initial cost of the equipment was $215,000 with accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $30,000. What is the amount of the gain or loss on this transaction? a. Gain of $30,000 b. Loss of $30,000 c. No gain or loss d. Cannot be determined

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Want to see the full answer?

Chapter 11 Solutions