SMALL TRANSPORT ENTERPRISE BOOKKEEPER IN ACCOUNTING FRAUD Ahonfe Manye worked for a small transport enterprise as a bookkeeper. She began a live of luxury on her GHS35,000 a year, but her supervisor, Kwame Wakaso did not notice. What Kwame did notice when reviewing employee salaries was that Ahonfe's salary was listed at GHS36,000 a year and he was certain she had been hired at GHS1,000 a year less. Kwame Wakaso checked Ahonfe Manye's personal file, and sure enough, her pay record had been altered. Becoming suspicious, he looked further and saw many suspicious bank transfers out of the company's current account. Kwame Wakaso decided the case needed professional investigation, and he hired Kweku Domlevo, a Chartered Accountant. Even though only the owner could sign checks, Ahonfe Manye was responsible for all other accounting functions for the business, including handling bank transfers. She would authorize a bank transfer to her own bank account and cover it by spreading the amount between one or more expense accounts. She was aware that no one but herself reconciled the bank account, so when the bank statements arrived, she would tear up any evidence. The crime would have been prevented or at least stopped as soon as it began if the company had a second person review the bank statements. Most company embezzlement starts small, and as the perpetrators realize they are undetected, they continue to steal larger amounts. Ahonfe Manye was indicted and spent several years in Nsawam Medium prison. She was a beautiful prisoner, however, because she used much of the money for head-to-toe cosmetic surgery! REQUIRED: a) What five internal controls were violated in this accounting fraud? (7.5 marks) b) What should the owner do to prevent this form of accounting fraud in the future (7.5 marks) c) Why is it important for an owner of a small business to become involved with the daily operations including the accounting records? (5 marks)

pur-new-sol

Related Questions