Howard Street Jewelry Accounting Case Study on Internal Controls 1. The main internal control concept the Levis ignored was segregation of duties. No one person should be responsible for all transactions from the beginning to the end. Betty had too many responsibilities that were interwoven and should have been performed by more than one person. She handled the cash that came in‚ maintained the cash receipts and the sales records. Another concept that this relates to is that no one
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Howard Street Jewelers‚ Inc. 1.) The Levis overlooked both Administrative control and Accounting control objectives. By allowing Betty to execute transactions without Management’s approval they did not satisfy Administrative controls. It is also unclear whether there was any formal official procedure established which Betty was required to follow. Concerning Accounting control‚ the Levis first and foremost did not ensure that transactions were recorded as necessary. Betty was apparently given
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Case Overview For forty years the Levis owned and operated a jewelry store. They had survived many financial ups and downs over the years‚ but the current declining cash position of the company was nearing critical. On more than one occasion Mrs. Levi had suspected Betty‚ a long term‚ reliable‚ employee for over twenty years‚ might be stealing from the company. Betty not only worked as a sales clerk‚ but she also handled all of the cash and bank deposits and maintained all of the sales and
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ABE Section: 4pm Howard Street Jewelers‚ Inc. 1. Identify the internal control concepts that the Levis overlooked or ignored. In the Howard Street Jewelers case‚ I strongly believe that Levis didn’t perform any internal control. According to the internal control concept‚ internal controls to work to achieve organizational objective of effectiveness and efficiency of operations‚ reliability of financial reporting‚ and compliance with applicable laws and regulations. In this case‚ Levis should
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The Jewelry Guy de Maupassant Monsieur Lantin had met the young girl at a reception at the house of the second head of his department‚ and had fallen head over heels in love with her. She was the daughter of a provincial tax collector‚ who had been dead several years. She and her mother came to live in Paris‚ where the latter‚ who made the acquaintance of some of the families in her neighborhood‚ hoped to find a husband for her daughter. They had very moderate means‚ and were honorable
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The Jewelry By Gay de Maupassant * The story takes place in Paris. * Mr. Lantin * Monsier Lantin the chief clerk of the department of the interior. Enjoyed a sung Little salary of three thousand five hundred francs. * Mr. Lantin meet his wife at reception at the house of the second head of his department and had fallen head over heels in love with her. * Mr. Lantin wife governed his household with such clever economy that seemed to live in luxury. She lavished the most
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Howard Street Jewelers‚ Inc. A. Synopsis Howard Street Jewelers Inc. is a small retail business owned by Mr. & Mrs. Julius Levi for more than 40 years. Undoubtedly‚ the company had its ups and downs. It survived its previous sales slack by cutting costs. Currently‚ the business is experiencing a continuous downward spiral of its cash position notwithstanding the safety measures the company had taken. With that‚ Mrs. Lore Levi got alarmed that the jewellery company might close. Mrs. Levi
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"The Jewelry" by Guy De Maupassant is about a young‚ clerk who falls in love with what was thought of as the "ideal" good woman‚ because of her saintly qualities. Her beauty had charm of angelic shyness; and her smile always seemed a reflection of her heart. She seemed exactly what any man would want and wanted to spend their life with. Madame Lantin had only two flaws‚ her love for theater and her passion for false jewelry. As time soon told this love struck gent‚ these were not her only flaws.
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overlooked several internal control concepts that could have prevented Betty’s embezzlement from the company. • Segregation of duties: Betty had responsibilities in too many areas. She maintained the cash‚ the cash receipts‚ and the sales records for Howard Street Jewelers. This not only provided Betty with plenty of opportunity‚ but also gave her the means to conceal the theft. • Authorization of transactions: Betty was able to put items on layaway without authorization from management. • Physical controls:
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Case: Goodner and Howard Street Jewelers Cases Student Name: Shucong Li Date: 09.16.2014 I. Three conditions of Fraud Triangle: 1. Incentive or pressure to perpetrate fraud： a) Excessive pressure for management to meet third party expectations b) Financial stability or profitability is threatened c) Management’s personal financial situation is threatened 2. Opportunity to carry out the fraud a) Nature of the Industry or entity’s operations b) Complex or unstable organizational structure c) Ineffective
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