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1. Assume that Julee Shiver, accounts payable clerk for Galaxy Inc., stole $110,000 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud.
2. Before a voucher for the purchase of merchandise is approved for payment, supporting documents should be compared to verify the accuracy of the liability. Give an example of a supporting document for the purchase of merchandise.
3. The accounting clerk pays all obligations by prenumbered checks. What are the strengths and weaknesses in the internal control over cash payments in this situation?
4. The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsi- ble for the difference?
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on january 1 20x0 vickie maher purchases a large screen lcd tv from american furniture and appliance co for 10000.
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