Ed's Wife Diane Owns a Printing Business in Town

question 29

Essay

Ed's wife Diane owns a printing business in town.Ed works in the accounts payable department of Jiffy Abs Vitamin Company.Diane prints invoices for work supposedly done for Jiffy Abs (no actual work was performed)and Ed places in the invoice in the approved for payment invoice pile.Jiffy Abs pays these invoices and sends Diane a check.
1.Name two internal controls that might prevent or detect these fraudulent payments.
2.Name two audit procedures that might detect this fraud.

---

Definitions:

Common Law Limitations

Restrictions and deadlines derived from judicial decisions rather than written laws.

Environmental Damage

Harm caused to the natural environment, including water, air, and land pollution, as well as destruction of ecosystems and loss of biodiversity.

Behavioral Learning

A process of learning that involves changes in an individual's behavior, often as a result of experience or conditioning.

Cue

A signal or prompt that triggers a response or indicates the nature of something.