Julie Works in Accounts Payable

question 100

Essay

Julie works in accounts payable.Her job is to prepare the voucher package and submit the completed voucher to the treasurer's office for payment.When the voucher is paid by the Treasurer's department it is returned to Julie (without the check)for filing.
The company receives invoices from Mona's Office Supply.When Julie receives the voucher package back from the Treasurer,Julie scans the invoice from Mona's Office Supply and changes the address so that a duplicate payment is sent to a Mail Boxes Etc.store where Julie rents a mail box under the name Mini's Official Supplies.With the slightly altered invoice (no other changes are made),Julie submits the voucher package a second time.Julie also has a bank account with the name Mini's Official Supplies.When Julie receives the check for Mona's Office Supply,Julie deposits it in her Mini's Official Supplies bank account and then used an ATM card to withdraw the cash.
A)Define the internal control weakness that allowed the situation to exist - if any;
B)One (and only one)specific internal controls that should be in place to prevent or detect the problem; and
C)One (and only one)test of control audit procedure.
D)One (and only one)substantive audit procedure that may detect the situation described.
No credit will be given for generic controls (e.g.policies and procedures; separation of duties without specifics; discuss with management).Be specific
Students may give any of the following
There is no mention of the voucher package being marked "Paid" or in some other way be marked so that documents cannot be reused.
Have the company mark each document "Paid" so they cannot be reused
• Observation of treasurer payment procedures
• Inquiry of the treasurer regarding payment procedures
• Inspect paid voucher packages for indication of payment on documents
• Scan cash disbursements journal for duplicate payments
• Perform analytical procedures on office supplies
• Check vendor payment addresses with mailbox stores' addresses
• Vouch payments to receiving reports and physical supplies

• A)Define the internal control weakness that allowed the situation to exist - if any;
• B)One (and only one)specific internal controls that should be in place to prevent or detect the problem; and
• C)One (and only one)test of control audit procedure.
• D)One (and only one)substantive audit procedure that may detect the situation described.
• No credit will be given for generic controls (e.g.policies and procedures; separation of duties without specifics; discuss with management).Be specific
• Students may give any of the following
• There is no mention of the voucher package being marked "Paid" or in some other way be marked so that documents cannot be reused.
• Have the company mark each document "Paid" so they cannot be reused
• • Observation of treasurer payment procedures
• • Inquiry of the treasurer regarding payment procedures
• • Inspect paid voucher packages for indication of payment on documents
• • Scan cash disbursements journal for duplicate payments
• • Perform analytical procedures on office supplies
• • Check vendor payment addresses with mailbox stores' addresses
• • Vouch payments to receiving reports and physical supplies

---

Definitions:

Perception

The process by which individuals interpret and organize sensory information to produce a meaningful experience of the world.

Hawthorne Experiment

A series of studies conducted in the 1920s and 1930s that examined the effects of work environment changes on employee productivity, leading to insights on the importance of social factors and employee attention.

Informal Organization

The network of personal and social relationships that naturally form within an organization, which can influence the formal structure.

Informal Organization

The network of personal and social relationships that form naturally within an organization outside of the formal structure.