You Began Your New Job as the Accountant at Bolivar

Essay

You began your new job as the accountant at Bolivar Industries during the month of December. During your first month, you found several interesting issues.

1) While looking through the invoices, you found Invoices 213-242, 245-271, and 275-290. It appears that invoices
243, 244, 272, 273, and 274 are missing.

2) During the month, Clerk # 3 issued $250 in refunds as compared to Clerks #1, #2, and #4 who issued less than
$50 each.

3) The daily cash receipts and bank deposits reconcile, except on Tuesdays during the month.

4) Business is generally brisk during the holiday season, but two weeks before Christmas there was a sudden
increase in slow payments.

Part A: What kind of warning signs could be associated with these issues?
Part B: What control could you put in place regarding cash refunds mentioned in Part A (2)?