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Posted: July 21st, 2024
The Patricia Company Pty Ltd had a poor internal control over its cash transactions. Facts about its cash position at 30 November 19X0 were as follows:The cash book showed a balance of $18901.62, which included undeposited receipts. A credit of $100 on the bank’s records did not appear on the books of the company. The balance per bank statement was $15500. Unpresented cheques were #62 for $116.25, #183 for $150, #284 for $253.25, #8621 for $190.71, #8623 for $206.80, and #8632 for $145.28.The cashier abstracted all undeposited receipts in excess of $3794.41 and prepared the following reconciliation:Balance per books, 30 November 19X0 $18901.62Add unpresented cheques:8621 $190.718623 206.808632 145.28______________________________________________________________________ $ 442.79 $19344.41Less undeposited receipts 3794.41____________________________________________________________________________________Balance per bank, 30 November 19X0 $15500.00Deduct unrecorded credit 100.00True cash, 30 November 19X0 $ 15450.00Required:a)Prepare a working paper showing how much the cashier abstracted.b)How did she attempt to conceal her theft?c) Using only information given, name two specific features of internal control that were apparently lacking.
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