Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781337517386
Author: WARREN
Publisher: Cengage
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Question
Chapter 5, Problem 5.2C
To determine
Concept Introduction:
Internal Control:
Internal controls are policies and procedures implemented by an organization to attain operational goals and maintain the integrity of accounting. Internal
To Indicate:
The weakness in the internal control and the way to correct it
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Internal controls
The following is an excerot from a conversation between two salesclerks,Jean Moen and Sara Cheney.Jean and Sara are employed by Turpin Meadows Electronics, a locally owned and operated electronics retail store.
Jean:Did you hear the news?
Sara: What news?
Jean:Neal and Linda were both arrested this morning.
Sara:What?Arrested?YOu're putting me on!
Jean:NO,really!The polic arrested them first thing this morning.Put then in handcuffs,read then rights-the whole works.It was unreal!
Sara: what did they do?
Jean:Well,apparently they were filling out merchandies refund forms for fiction customers and then taking the cash.
SAra: I guess i never thought of that.How did they catch them?
Jean: The store manager noticed that returns were twicw that of the last year and seemed to be increasing.Whan he confronted Neal<he became fkustered and admitted to taking the cash,apparently more than $9,000 in just three months.They're going over the transactions of the last six months…
The following is an excerpt from a conversation between two sales clerks, Jean Moen and Sara Cheney. Jean and Sara are
employed by Turpin Meadows Electronics, a locally owned and operated electronics retail store
Jean: Did you hear the news?
Sara: What news?
Jean: Neal and Linda were both arrested this morning.
Sara: What? Arrested? You're putting me on!
Jean: No, really! The police arrested them first thing this morning. Put them in handcuffs, read them their rights-the
whole works. It was unreal!
Sara: What did they do?
Jean: Well, apparently they were filling out merchandise refund forms for fictitious customers and then taking the cash.
Sara: I guess I never thought of that. How did they catch them?
Jean: The store manager noticed that returns were twice that of last year and seemed to be increasing. When he
confronted Neal, he became flustered and admitted to taking the cash, apparently more than $9,000 in just three
months. They're going over the last six months' transactions to…
The following is an excerpt from a conversation between two salesclerks, Jean Moen and Sara Cheney. Jean and Sara are employed by Turpin Meadows Electronics, a locally owned and operated electronics retail store.Jean: Did you hear the news?Sara: What news?Jean: Neal and Linda were both arrested this morning.Sara: What? Arrested? You’re putting me on!Jean: No, really! The police arrested them first thing this morning. Put them in handcuffs, read them their rights— the whole works. It was unreal!Sara: What did they do?Jean: Well, apparently they were filling out merchandise refund forms for fictitious customers and then taking the cash.Sara: I guess I never thought of that. How did they catch them?Jean: The store manager noticed that returns were twice that of last year and seemed to be increasing. When he confronted Neal, he became flustered and admitted to taking the cash, apparently more than $9,000 in just three months. They’re going over the transactions of the last six months to…
Chapter 5 Solutions
Survey of Accounting (Accounting I)
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
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- The following is an excerpt from a conversation between two sales clerk, Tracy Rawlin and Jeff Weimer. Both Tracy and Jeff employed by Magum electronics, a locally owned operated electronics retail store . Tracy: did you hear the news? Jeff: what news? Tracy: Bridget and Ken were both arrested his morning. Jeff: what arrested? You are putting me on! Tracy:No, really ! The police arrested then first thing this morning. Put them in handcuffs , read them their right the whole works. It was unreal! Jeff: what did they do? Tracy : well apparently they were filling out merchandise refund form from fictitious customers and then taking the cash . Jeff: I guess I never thought of that .How did they catch them? Tracy: The store manager noticed that returns were twice that of last year and seemed to be increasing. When he confronted Bridget , she became flustered and admitted to taking the cash , apparently over $ 15000 in just three months. They are going over the last six months…arrow_forwardPlease read the following and identify any internal control principles that may be violated in the Jane Hardware store.(identify what could go wrong and what controls Jane Hardware should put in place to prevent it) Jerry Finch has worked for Jane Hardware for many years, Jerry has been a model employee. He has not taken a vacation in over three years, always stating that work was too important. One of Jerry's primary jobs at the store is to open mail and list the checks received. He also collects cash from customers at the store's outdoor nursery area. There are times that things are so hectic that Jerry does not bother to use the register, simply making change from cash he carries with him. When things slow down at the store Jerry often offers to help Cindy(the Accounting Clerk) post payments to the customer's accounts receivable ledger. Cindy is always happy to receive help since she is also quite busy and because Jerry is such a careful worker.arrow_forwardYou are a sales associate with a large department store chain. You have noticed that a fellow sales associate has been taking high-ticket items home with her. You have checked the sales records and she has not been paying for the items. You should: Ignore the conduct because it is not your business. O Ignore the conduct because she will be caught eventually. O Confront her with your knowledge. Report her conduct to the policearrow_forward
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