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Unformatted text preview: (5-20 min.) E 4-15a. Miller has access to the cash collected, and he also prepares the cash report. With access to both items, Miller can steal cash and falsify his cash report to conceal his theft.b. Fisher prepares the purchasing order and also receives the goods. She can add some items to the purchase order and have these extra items shipped to a location she controls. When the goods come in, she checks the incoming shipment, so there’s no outside party to learn of her dishonesty.c. An external audit normally includes an examination of the client’s financial statements and the underlying transactions. With no examination of these important items, the auditor may reach the wrong conclusion about Mattson’s financial statements. People who lent money to Mattson or bought Mattson stock may make unwise decisions in their dealings with Mattson and lose money as a result.Student responses may vary.(5-10 min.) E 4-181.b5.d2.b6.c3.d7.c4.a(10-20 min.) E 4-20Tim Van WinkleBank Reconciliation...
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This note was uploaded on 04/03/2012 for the course ACCT 23020 taught by Professor Dorff,p during the Spring '08 term at Kent State.
- Spring '08