d Incorrect The financial vice president received checks made out to suppliers

D incorrect the financial vice president received

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d. Incorrect The financial vice president received checks made out to suppliers and the supporting invoices, signed the checks, and put them in the mail to the payees. Fraud would be difficult because financial VP would also need to be able to create fictitious vendors and invoices. 6.32 a. Incorrect The individual responsible for receiving the remittances is often responsible for preparing the daily deposit. Both activities qualify as “custody” activities. So, this response is incorrect. b. Incorrect The individual responsible for receiving the remittances is often responsible for making the daily deposit. Both activities qualify as “custody” activities. So, this response is incorrect. c. Correct The auditor would consider it incompatible because the cashier would have both custody of cash and record-keeping responsibility and, hence, could steal money and fix the records without interference by anyone else. The cashier could steal and then conceal! d. Incorrect The individual responsible for receiving the remittances is often responsible for endorsing the checks. Both activities would qualify as “custody” activities. So, this response is incorrect.
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  • Spring '15
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