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 FINAN.+MNGRL >IA<
- During a period of timearrow_forwardDuring its first year, Yutsang Enterprises showed a $22 per-unit profit under absorption costing but would have reported a total profit of $20,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 58% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $240,000?arrow_forwardIf you give me correct answer this financial accounting question I will give you helpful ratearrow_forward
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage