Question

Jim Coleman, was appointed the manager of Maris Properties, a recently formed company that manages residential rental properties. Linda Grider is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. One of the largest expense categories is Travel and Entertainment. Mr. Coleman believes that it is important to maintain a presence in the social life of the city. In this, he sharply differs from his father, Randall Coleman. Randall has set up Maris Properties in order to test his son's management skills before allowing him to manage the more lucrative commercial property business. Randall provided the capital for Maris, and maintains close contact with the company. He allowed his son, however, to hire his own employees.

Mr. Coleman has asked Linda, the accountant, to change the name of the Travel and Entertainment account to Property Development. He hopes to distract his father's attention away from the amount he has spent on travel and entertainment until he has proven that his methods work. When Linda resisted, he reminded her that he, not his father, hired her. He also reminded her that she had been enthusiastic about his business plans when she was hired

Required

a. Should Ms. Grider agree to the change in the Travel and Entertainment account to Property Development? Explain.

b. What controls can be recommended by Linda to ensure that such frauds do not occur?

Please i need more info, i already asked the question twice.

Answer 1

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