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Lombard Company is a young business that has grown rapidly The company s bookkeeper, who was hired two years ago, left town suddenly after the company s manager discovered that a great deal of money

Lombard Company is a young business that has grown rapidly. The company s bookkeeper, who was hired two years ago, left town suddenly after the company s manager discovered that a great deal of money had disappeared over the past 18 months. An audit disclosed that the bookkeeper had written and signed several cheques made payable to the bookkeeper s brother and then recorded the cheques as salaries expense. The brother, who cashed the cheques but had never worked for the company, left town with the bookkeeper. As a result, the company incurred an uninsured loss of $84,000. Evaluate Lombard Company s internal control system and indicate which principles of internal control appear to have been ignored in this situation.

Apr 24 2020 View more View Less

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