User Account

All Pages

What internal control principle is violated in this payroll

Assignment Help Accounting Basics
Reference no: EM131129374

1. Daniel Longan owns and manages Daniel's Restaurant, a 24-hour restaurant near the city's medical complex. Daniel employs 9 full-time employees and 16 part-time emplyees. He pays all of the full-time employees by check, the amounts of which are determined by Daniel's public accountant, Gina Watt. Daniel pays all of his part-time employees in currency. He computes their wages and withdraws the cash directly from his cash register. Gina has repeatedly urged Daniel to pay all employees by check. But as Daniel has told his competitor and friend, Steve Hill, who owns the Greasy Diner, "My part-time employees prefer the currency over a check. Also, I don't withhold or pay any taxes or workmen's compensation insurance on those cash wages because they go totally unrecorded and unnoticed."

Instructions

(a) Who are the stakeholders in this situation?

(b) What are the legal and ethical considerations regarding Daniel's handling of his payroll?

(c) Gina Watt is aware of Daniel's payment of the part-time payroll in currency. What are her ethical responsibilities in this case?

(d) What internal control principle is violated in this payroll process?

Reference no: EM131129374

Questions Cloud

How you would represent one of these concerns as an aspect : Discuss how you would represent one of these concerns as an aspect.
How many futures contracts does this bank need to fully hedg : Chicago Bank and Trust has $100 million in assets and $83 million in liabilities. The duration of the assets is 5.9 years, and the duration of the liabilities is 1.8 years. How many futures contracts does this bank need to fully hedge itself against ..
Prepare a journal entry to correct the error : Determine which accounts are incorrect as a result of these errors at January 1, 2011, before adjustments. Explain your answer. Prepare a journal entry to correct the error. What other step(s) would be taken in connection with the error.
Questions about development the dynamics of creating value : Development: the dynamics of creating value 1. Why is the permitting stage of development often the riskiest stage of the process?2. List at least five ways that a developer may attempt to reduce the risks of the permitting process.
What internal control principle is violated in this payroll : Gina Watt is aware of Daniel's payment of the part-time payroll in currency. What are her ethical responsibilities in this case?
Identify the taxes that result in payroll tax expense : In a memorandum to Jack Quaney, explain each of the taxes, and identify the taxes that result in payroll tax expense to Ramsberg Company.
Chinese and indian culture in healthcare : Chinese and Indian culture in healthcare and nursing cross-culture nursing. How to do effective nursing care for patient outcome. Must use two source form Internet and cite.
What accounts are likely to be overstated or understated : Consider the implications of the above information for revenues. What assertions, if any, are likely to be misstated? As a result, what accounts are likely to be overstated or understated? Explain your reasoning.
How is this accomplished : Laura, a bond portfolio manager, administers a $10 million portfolio. The portfolio currently has a duration of 8.5 years. Laura wants to shorten the duration to 6 years using T-bill futures. T-bill futures have a duration of 0.25 years and are tradi..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd