understand the nature of the frauds that each control activity is intended to addres 616484
Identify which control activity is violated in each of the following situations, and explain how the situation creates an opportunity for a fraud.
- The person with primary responsibility for reconciling the bank account and making all bank deposits is also the company”s accountant.
- Wellstone Company”s treasurer received an award for distinguished service because he had not taken a vacation in 30 years.
- In order to save money spent on order slips and to reduce time spent keeping track of order slips, a local bar/restaurant does not buy pre numbered order slips.
Familiarize yourself with each of the control activities summarized.
Understand the nature of the frauds that each control activity is intended to address.