Core Concepts of Accounting Information Systems 12th Edition by Carolyn Strand Norman, Mark Simkin

Exercise 28

What company policies or procedures would you recommend to prevent each of the following activities?
a. A clerk at the Paul Yelverton Company faxes a fictitious sales invoice to a company that purchases a large quantity of goods from it. The clerk plans to intercept that particular paymentcheckandpocketthemoney.
b. The bookkeeper at a construction company has each of the three owners sign a paycheck for her. Each check is drawn from a separate account of the company.
c. A clerk in the human relations department creates a fictitious employee in the personnel computer file. When this employee's payroll check is received for distribution, the clerk takes and cashes it.
d. A clerk in the accounts receivable department steals $250 in cash from a customer payment and then prepares a computer credit memo that reduces the customer's account balance by the same amount.
e. A purchasing agent prepares an invoice for goods received from a fictitious supplier. She sends a check for the goods to this supplier, in care of her mother's post-office box.
f. A hacker manages to break into a company's computer system by guessing the password of his friend-Champ, the name of the friend's dog.
g. An accounts receivable clerk manages to embezzle more than $1 million from the company by diligently lapping the accounts every day for 3 consecutive years.
h. A computer virus on the company's local area network is traced to an individual who accidentally introduced it when he loaded a computer game onto his microcomputer.
i. A clerk at a medical lab recognizes the name of an acquaintance as one of those whose lab tests are ''positive'' for an infectious disease. She mentions it to a mutual friend, and before long, the entire town knows about it.