Joe Foss Has Worked for Dr

question 123

Essay

Joe Foss has worked for Dr. Sam Milton for several years. Joe demonstrates a loyalty that is rare among employees. He hasn't taken a vacation in the last three years. One of Joe's primary duties at the medical office is to open the mail and list the checks received. He also takes cash from patients at the cashier window as patients leave. At times it is so hectic that Joe doesn't bother with giving each patient a receipt for the cash paid on their accounts. He assures them he will see to it that they receive the proper credit. When the traffic is slow in the office, Joe offers to help Ann post the payments to the patients' accounts receivable. She is always happy to receive his help, because he is a very conscientious worker.
Instructions
Identify any principles of internal control that may be violated in this medical office situation.

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Definitions:

Edgeworth Box

A diagram used in microeconomics to show how different allocations of goods can lead to efficiency or inefficiency within a market.

Utility Function

A formula that quantifies the happiness or satisfaction received from consuming certain amounts and combinations of goods and services.

Endowed

Furnished or provided with a particular quality, ability, or asset.

Contract Curve

In an Edgeworth Box diagram, the locus of points representing the set of mutually beneficial allocations between two parties.