acct 326 7-26-10 - conceal fraud or errors in the course of...

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What should be done when unfavorable variances are discovered? When an unfavorable variance is discovered there should be an investigation done to determine whether logistics changes are needed to improve the conversion process. Management needs to identify who or what is responsible for the variance and take steps to correct the problem. To properly segregate duties what are three functions that general ledger employees should not do? The underlying principle in the segregation of duties is that no employee should or group of people should be in charge of multiple business function that would allow them to perpetrate or
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Unformatted text preview: conceal fraud or errors in the course of their normal duties. These duties include: The custody of and the transaction affecting any assets, recording the transactions, and any execution of transaction activity. For example one person should be in charge of the deposits while another is in charge of tracking and entering in the deposit information. This keeps one person from being able to take small amounts of money and not enter it into the bookkeeping software allowing fraud to take place....
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Dubai during the Spring '11 term at Abu Dhabi University.

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