What internal controls are missing to enable theft to occur

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Question - Serena is the assistant controller of Opus Inc. As a result of a recent expansion the controller has been very busy and delegated the signing authority of the cheques to Serena. Further, due to the cash accountant leaving on maternity leave, Serena was asked to perform the bank reconciliation until they found someone to replace the cash accountant.

Serena is a qualified accountant and has been able to handle all of these additional tasks. However, she asked her boss for a raise to compensate her for the additional responsibilities that she currently has. Her boss indicated that this was only temporary and the company could not afford a raise for now.

Serena created a vendor in the system with her home address. She has been paying this vendor $2,000 for the past 3 months as a means of compensating herself. This theft has yet to be discovered by Opus.

Required

a. What internal controls are missing to enable the theft to occur?

b. List 3 audit procedures that might detect the theft.

Reference no: EM132058502

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