Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were neverreceived. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure thatwould have prevented or detected the fraud.
Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were neverreceived. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure thatwould have prevented or detected the fraud.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were never
received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that
would have prevented or detected the fraud.
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