Solving Problems: a. A payroll clerk recorded 40-hour workweek for an employee who had quit the previous week. He then prepared a paycheck for this employee, forged her signature, and cashed the check.
Violation: The payroll clerk only has an authority to prepare the paycheck, not to signature or cashed the checks. The signature of payroll is the duty of HR manager, while cashed the paychecks is the duties of the cashier, so, the payroll clerk has violated his/her job description and his/her authorities.
Solution: In this case, we must make know job description and authorities to the clerk. Because the duty of clerk on this case is only record the activities happen. If all the job done by the clerk, the clerk can make a manipulation or some fraud for example, that the clerk issue a check but the check is not for the employee but for the clerk. So we must have someone to control the clerk and cut it out when some mistake happen.
And to solve this case we can also order someone to be the HR manager to make this case more secure from fraud. And for cashed the check we can give that job to cashier. After separate this duty and authorities we can minimize the risk.
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b. While opening the mail, cashier set aside, and subsequently cashed, two checks payable to the company on account. Violation: In this case, I think the problem, is why the cashier opened the mail? I think this is clerk job.
The cashier job is only spending the money. So we must make a new job description for the cashier and the clerk.
Solution: So we can make solve this case by, first we must separate the cashier and clerk job. Make new job description for them. The cashier job is only spend the money if there is check payable. But for checking the mail is still the job of clerk. Then before the check is transform to cash, still must have permission from finance manager so there will be more responsibility in activities.
c. A cashier prepared a fictitious invoice from a company using his brother-in law’s name. He sent an electronic payment for the invoice to his brother in law. Violation: Cashier is not have a right to make an invoice, the invoice must be prepared by A/P staff, and the cashier cannot make a payment before they got the assignment from the finance manager, there is no clear job description in this problem.
Solution: So in this case, we must make a clear job description. But before that, we must know there is a big fraud that cashier do. She make fictious invoice. To make clear this, we must give punishment to the cashier so they won’t be do that anymore. After we clear that problem now we can make a new design of issue a invoice. Invoice only can issue if already have a permission from the finance manager, or other manager. Because invoice can be responsible if there will be mistake in someday.
d. An employee of finishing department walked off with several parts from the store room and recorded the items as having been issued to the assembly department.
Violation: The problem is errorness of the employee. Because he walked off with several parts in the store room. In this case we must make a new design of storing inventory.
Solution: So with this case we must give the new design for storing inventory. Employee must be complete move the inventory from assembly department to finishing department. There must be no miss inventory that still in the store room. It must all move on. After that the employee is must be given a practice so there will be no more mistake like this again in the future.
e. A cashier cashed a check from a customer in payment of an account receivable, pocketed the cash, and conceal the theft by properly posting the receipt to the customer account in the accounts receivable ledger.
Violation: This is a fraud problem. The cashier has violated the ethics of work with do this. This problem probably can happen because of the weak internal control, there’s no tight controlling in cash receiving, so the cashier can do this.
Solution: This is a big trouble for company. So for the first things we do is we must give a punishment to the cashier and give a warning for other problem in the future. After the problem is clear we must have a new regulation for cashier so there will be no more action like this anymore. And manager must do more action to control every activities of the cashier.
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