Discussion
Paul Jones is the accountant for a large company that produces and sells machinery. One of Paul's month-end responsibilities is to review the bank reconciliation that ties the bank balance to that reflected on the financial statements. The company has an average balance in the cash account of around $2,000,000, with many inflows and outflows occurring daily. Over the past 3 months, Paul has detected shortages in the account anywhere from $1,000 to $3,000 monthly. He has become concerned about this reoccurring issue and approaches his boss. After hearing the details, the boss responds "Ah, don't worry Paul, it's a really immaterial amount that the company doesn't miss. With as many transactions as we process, there's no way that we could ever balance to the penny!" After the chat, Paul has a funny feeling and is not sure whether to take the advice or to make further inquiry.
Using both the required text and external resources, address the key points (concerns). Responses should be unique and incorporate your personal perspectives that are supported by reading and research. Initial comments should be 1-2 paragraphs in length for each point. Follow-up postings should not exceed a paragraph and should add additional information or perspective to the original author's comments.
• Does Paul have a valid concern?
• What might be a bigger problem that is occurring within the company and what steps can be taken to resolve it?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.