The flowchart labeled Problem 14 depicts the responsibilities of an accounting clerk in a small company. RequiredIdentify any control problems in the system.What sorts of fraud are possible in this system? Accounting ClerkDaily ProceduresEnd of Month ProceduresCustomerBankBankCheckStatementRemittanceAdviceAR SubLedgerPrepare BankReconciliationRecord Cashand UpdateAccountsGeneralLedgerBankStatementCheckRemittanceBankAdviceDepositSlipReconciliationBank

Internal control system is a set of policies and procedures to be followed in case of operations of…

Answered: ontrol problems in the system

Business

Accounting

ontrol problems in the system

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 3BE

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Question

The flowchart labeled Problem 14 depicts the responsibilities of an accounting clerk in a small company.

Required

Identify any control problems in the system.
What sorts of fraud are possible in this system?

Accounting Clerk
Daily Procedures
End of Month Procedures
Customer
Bank
Bank
Check
Statement
Remittance
Advice
AR Sub
Ledger
Prepare Bank
Reconciliation
Record Cash
and Update
Accounts
General
Ledger
Bank
Statement
Check
Remittance
Bank
Advice
Deposit
Slip
Reconciliation
Bank

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