Accountant Essay

791 WordsJan 31, 20124 Pages
Understanding Internal Controls Case Study: Several months ago, Sally Smith transferred to the Nutrition Department on the Lewis City campus of Arcane University. Sally was hired to replace the office manager who quit after 1 year of service. Sally has several years of experience working at academic institutions, has a working knowledgeable about fund accounting and knows a little about internal controls. Since beginning the job, Sally has discovered some concerning facts about the department. The following is information about the department: • Department has a chair (Dr. Lax), 2 associate chairs (Dr. Cool and Dr. Strict) , 2 staff members (other than the office manager) and 30 faculty members • Of the 2 other staff members, one has worked in the department for 15 years and the other less than 6 months. The staff member with less than 6 months of experience has not attended all the training session he should have to complete his job duties. • All faculty members have procurement cards (P-cards); the chair is the approver for all P-card holders. Dr. Lax instructs Sally to use a stamp of his signature to sign the monthly statements. He states that he doesn’t need to look at the monthly statements or the receipts. • Staff members occasionally come to work late or leave early but record a full day’s work on their work record. They also take long lunches without making up the time. Staff members are sloppy about submitting leave/absence requests. Sally has mention this to the chair but got little, if any, reaction. • Graduate students who apply for admission to the department pay a $50 application fee. Most students remit this fee in the form of a check or money order but some students hand deliver their applications and pay the fee in cash. The department does not log the payments when the

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