Chapter 7 Acc557

preview of chapter 7 As the story about save currency sales at Stephanies Gourmet deglutition chocolate and much indicates, throw of cash is important to master that spoof does not come out. Companies likewise need controls to protect other types of assets. For example, Stephanies doubtlessly has controls to counter the theft of food and supplies, and controls to prevent the theft of tablewargon and dishes from its kitchen. In this chapter, we explain the essential features of an cozy control system and how it prevents contrivance. We also describe how those controls apply to a precise assetcash. The applications accept some controls with which you may be already familiar, such as the use of a bank. The content and fundamental law of Chapter 7 argon as follows. Fraud and Internal chasten study objective 1 fix fraud and indispensable control. The Feature Story describes many of the internal control procedures utilize by Stephanies Gourmet Coffee and More . These procedures are needed to discourage employees from fraudulent activities. FRAUD A fraud is a dishonest act by an employee that results in in-person bring in to the employee at a cost to the employer.

Examples of fraud account in the financial press include: A bookkeeper in a small company diverted $750,000 of bill payments to a personalized bank account over a three-year period. A transportation system clerk with 28 years of service shipped $125,000 of product to himself. A computer operator embezzled $21 one gazillion million million from Wells Fargo Bank over a two-year period. A church treas urer borrowed $150,000 of church funds to fi! nance a friends business dealings. why does fraud go past? The three main factors that can to fraudulent activity are depicted by the fraud triangle in exercise 7-1. The most important component of the fraud triangle is opportunity. For an employee to seat fraud, the workplace environment mustiness provide opportunities that an employee can exploit. Opportunities occur when the workplace lacks...If you want to impersonate a full essay, disposition it on our website: OrderCustomPaper.com

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