Fluffy Dogs Inc., is a small company with three people working in the revenue processes. One employee, Brenda, works as the Supervisor. Sally and Tyler report to Brenda. Together, this group must achieve the following tasks:
1. Accounts receivable maintenance
2. Credit approval of customers
3. Authorizing customer returns
4. Authorizing new customers
5. Cash receipts journal posting
6. Maintaining custody of cash
7. Inventory record keeping
8. Maintaining custody of inventory
Required:
For each of the three employees consider the duties you would assign to each employee. In assigning duties there should be a proper separation of duties to achieve appropriate internal control. List the three people, the duties you assigned to each employee, and a description of why those assignments achieve proper separation of duties. Provide two example pairings where proper internal control is not met and explain how fraud could be perpetrated by one person being responsible for duties that are not properly segregated. There will be three answers to this question.