In: Economics
a) Jason Philber, a swindler, sent several businesses invoices requesting payment for office supplies |
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that had never been ordered or delivered to the businesses. A 5 percent discount was offered | |||||||
for prompt payment. What internal control procedures should prevent this swindle from being | |||||||
successful? Discuss. |
b)
The cashier for Downtown Cafeteria is located at the end of the food line. After customers have | |||||||
selected their food items, the cashier rings up the prices of the food and the customer pays the | |||||||
bill. The customer line frequently stalls while the person paying searches for the correct amount | |||||||
of cash. To speed things up, the cashier often collects money from the next customer or two who | |||||||
have the correct change without ringing up their food on the register. After the first customer fi- | |||||||
nally pays, the cashier rings up the amounts for the customers who have already paid. What is the | |||||||
internal control weakness in this procedure? How might the internal control over the collection of | |||||||
cash from the cafeteria customers be strengthened? |
a. Following measures must be taken to prevent this swindle from being successful:
b. Suggested measures for improving the internal control
over the collection of cash from the cafeteria customers: