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Anarel [89]
2 years ago
13

Helen Weeks has worked for Bonne Consulting Group (BCG) as the executive secretary in the administrative department for nearly 1

0 years. Her apparent integrity and dedication to her work has quickly earned her a reputation as an outstanding employee and has resulted in increased responsibilities. Her present responsibilities include making arrangements for outside feasibility studies, maintaining client files, working with outside marketing consultants, initiating the payment process, and notifying the accounting department of all openings or closings of vendor accounts.
During Helen’s first five years of employment, BCG subcontracted all of its feasibility and marketing studies through Jackson & Co. This relationship was subsequently terminated because Jackson & Co. merged with a larger, more expensive consulting group. At the time of termination, Helen and her supervisor were forced to select a new firm to conduct BCG’s market research. However, Helen never informed the accounting department that the Jackson & Co. account had been closed.

Since her supervisor allowed Helen to sign the payment voucher for services rendered, Helen was able to continue to process checks made payable to Jackson’s account. Because her supervisor completely trusted her, he allowed her to sign for all voucher payments less than $10,000. The accounting department continued to process the payments, and Helen would take responsibility for distributing the payments. Helen opened a bank account in a nearby city under the name of Jackson & Co., where she would make the deposit. She paid all of her personal expenses out of this account.

Assume that you have recently been hired by Bonne Consulting Group to help detect and prevent fraud.
1. What internal controls are missing in Helen’s company?
2. What gave Helen the opportunity to perpetrate the fraud?
3. How could this fraud have been detected?
Business
1 answer:
elena55 [62]2 years ago
5 0

Answer:

1.)  The internal controls which were missing are from the separation of responsibilities. There must have been in place an inner regulator were an individual works with advisers while alternative individual or unit take-care of the expense procedure, then somebody else allow expenses and then office should distribute the expenditures. There is an absence of inner controls as you can realize that the corporation amalgamated with a larger corporation and no one measured other accounts such as Jackson and company any longer.

2.)  With the lack of control, this offered Helen the chance to effect the fraud. With this presence said, she was talented to emulate sign receipts and spend the retailer’s expenditures. She were also the one in responsibility of office the initial and final of accounts. In short, she had several accountabilities that should have remained separated up better and had diverse individuals for the separations of the job. In addition, she needed a bank description from the corporation where she was capable to put the expenditures and pay individual expenditures.

3.)  The method this fraud might be noticed is the inspection squad can ask the bank for reports. They might also conference sellers. The accounting section should have ended sure they were doing the due diligence in dealers and corresponding the receipts with statements and expenditures.

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How might a person’s place in the life cycle influence investment decisions?
vfiekz [6]

Answer:

Student responses will vary, but should include: A young investor has years of earning power and can take greater risks because he/she has time to make-up for losses. An older investor needs more security and current income from their investments because they are using it to retire on or they need it to continually grow so that they can retire.

Explanation:

3 0
3 years ago
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin
NeX [460]

Answer:

1. Cutting Department = $8.99 per machine hour and Finishing Department = $11.53 per direct labor hour.

2. The  total manufacturing overhead cost assigned to Job 203 is $2,058.46.

3. Yes. Plant wide pre-determined overhead rate does not consider the cost driver in the departments involved.

Explanation:

<em>Predetermined overhead rate = Budgeted Overheads / Budgeted Activity</em>

Cutting Department = $390,000 / 43,400

                                 = $8.99 per machine hour

Finishing Department = $496,000 / 43,000

                                    = $11.53 per direct labor hour

<u>Total manufacturing overhead cost assigned to Job 203.</u>

Direct materials

Cutting Department                             $ 745.00

Finishing Department                          $ 370 .00

Direct labor costs

Cutting Department                              $ 43.00

Finishing Department                          $ 210.00

Variable manufacturing overhead

Cutting Department ($2.00 × 43)         $86.00

Finishing Department ($2.00 × 4)          $8.00

Variable manufacturing overhead

Cutting Department ($3.75 × 3)              $11.25

Finishing Department ($3.75 × 13)        $48.75

Fixed manufacturing overhead

Cutting Department ($8.99 × 43)        $386.57

Finishing Department ($11.53 × 13)       $149.89

Total                                                   $2,058.46

5 0
2 years ago
Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that
geniusboy [140]

Answer:

Explanation:

Beginning WIP inventory                    74000  

Add: Units started during May           390000  

Less: Ending inventory                        34000  

Units completed and transferred       430000  

1                        Equivalent Units

                                                            Whole units Materials    Conversion

Beginning WIP inventory                    74000           74000        74000

Started & completed                          356000     356000        356000

Ending inventory                                34000           23800         10200

Units accounted for                           464000         453800        440200

                                                                Materials Conversion  

Equivalent units of production         453800    440200  

2    

Cost Data:                                                 Total Material Conversion

Beginning WIP inventory                  142800     98800       44000

Current costs                                      755960    513830      242130

Total cost to account for                    898760    612630      286130

Divided by Equivalent units                                    453800 440200

Cost per Equivalent unit                           2.00      1.35 0.65

Materials Conversion  

Cost per Equivalent unit                           1.35 0.65  

3    

Cost Assignment:    

Ending Work in process:    

Material                                                 32130  

Conversion                                            6630  

Total Ending Work in process             38760  

4    

Cost of units completed and transferred    

Material                                                 580500  

Conversion                                            279500  

Total                                                       860000  

5    

Cost to be accounted for:    

Beginning WIP inventory                       142800  

Current costs                                          755960  

Total costs to be accounted for            898760  

Cost accounted for as follws:    

Cost of units completed and transferred 860000  

Cost of ending work in process            38760  

Total costs accounted for                      898760  

6 0
2 years ago
During its first year of operations, Maria Rose invested $25,000 in Roseland Inc. in exchange for its common stock. The company
Mazyrski [523]

Answer:

$80,000

Explanation:

During the first year of oeration Maria Rose invested $25,000 in Roseland incorporation

The company earned $68,000 in revenue

They incurred expenses of $32,000

A cash dividend of $5,000 was paid out to Maria

The company owed $24,00£ to its creditors

Assets = liabilities - equity

The first step is to calculate the equity

Equity= common stock - dividend + revenue-expenses incurred

= $25,000-$5,000+$68,000-$32,000

= $20,000+$36,000

= $56,000

Therefore the company's assets can be calculated as follows

= $24,000 + $56,000

= $80,000

Hence the total company's assets is $80,000

8 0
3 years ago
Eileen is considering assignments, training programs, and development opportunities that she will need in preparation for being
qaws [65]

<span>Eileen is in the development phase in terms of her career development. The development phase is where the person is starting and learning to develop the activities that he or she is involved in—in a way to show the person strengths and achieve things with the use of their performance.</span>

5 0
3 years ago
Read 2 more answers
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