Jonathan Simpson owns a construction company. One day a subcontractor calls him
ID: 3667650 • Letter: J
Question
Jonathan Simpson owns a construction company. One day a subcontractor calls him saying that he needs a replacement check for the job he completed at 1437 West Maple Avenue. Jonathan looks up the job on his accounting program and agrees to reissue the check for $12,750. The subcontractor says that the original check was for only $10,750. Jonathan looks around the office and cannot find the company checkbook or ledger. Only one other person, Mike Hudson, has access to the accounting program. Jonathan calls you to investigate. In order to conduct your investigation you will need to answer the following questions.
a.What questions should you ask Jonathan Simpson (the owner) and how should you proceed? Please explain why each question is important.
b.What internal resources will you need to assist with the investigation?
c.Should you speak with Mike Hudson? If so, what should you ask?
Explanation / Answer
Jonathan check his account first and as well as bank statement.
a ans: Jonatan asks question to his sub contarctor is first cheque is 10,750 but reissued checque is 12,750
why the cost is increased to 12,750 and where is the cheque book and ledger for his money transactions.
This question is important because as a investor jonathan knows about the cost of the work and analyse the circumstatnces of the work premises and enquire about the cheque book / ledger.
b ans: The internal resources to help the investigation is manual statement by hudson and a banker statement or accounting statement obtaimned from the computer inside the office.
Note : Every office maintain a data base of the money transaction which will be made by the owner / function head i.e accounting head.
C ans: Yes Jonathan speak with hudson and enquire about the work status in the current location and enquire about the material cost, man power cost, because it reflects to the investment.
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