A Company You Have Been Asked to Examine as Part

question 86

Essay

A company you have been asked to examine as part of an AIS consulting engagement employs a cashier who handles all cash receipts from customers.The cashier counts the cash daily,prepares the bank deposit,and carries the deposit to the bank every day after work.In addition,the cashier authorizes all discounts and allowances and decides when uncollectible accounts will be written off.Finally,because the accounting department is overworked at times,the cashier is allowed to post cash payments to customer accounts and reconcile the bank account.Outline how a dishonest cashier could misuse all these responsibilities to steal cash from the company.

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Definitions:

Punishment

Discourages a behavior by making an unpleasant consequence contingent on its occurrence.

Reward

A reward is an incentive or benefit given in recognition of someone's effort, achievement, or contribution.

Self-Control

The ability of an individual to regulate their emotions, thoughts, and behavior in face of temptations and impulses.

Position Power

The authority and influence a person possesses within an organization due to the role or position they hold.