acc562 week 6 discussion 1

acc562 week 6 discussion 1 - ,Inc Based on your analysis of...

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Case 6A - Howard Street Jewelers, Inc.  Based on your analysis of the “Howard Street Jewelers, Inc.” case, respond to each of the discussion points: Discuss the internal control concepts that the Levis overlooked or ignored. When Lore informed the CPA of her suspicions regarding Betty, what responsibilities, if any, did the CPA have to pursue this matter? Discuss what internal controls may prevent stealing in a small retail business Discuss the internal control concepts that the Levis overlooked or ignored. The main internal control concept that the Levis overlooked or ignored is “segregation of duties”. Segregation of duties means that no individual in the company should perform more than any one of the function of authorization, custody, or recordkeeping. That is, duties within a business should be separated so that one person does not perform processing from the beginning to the end of a process. In this case, Betty handled all of the cash that came into the business and maintained the cash receipts and sales records. Apparently, it violates “segregation of duties” principle of internal control.
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acc562 week 6 discussion 1 - ,Inc Based on your analysis of...

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