Case 3 2 howard street jewelers inc

Therefore, when I make them come back later, it would not be a major inconvenience for them. The CPA mainly offered tax services for the Levis, he did not have any responsibility to pursue the suspicions regarding Betty because he was not auditing Howard Street Jewelers.

Performance reviews compare where the company is standing compared to past years and to forecasted budgets. There are three major reasons for sending the client away; the first is I will not drop what I am doing for somebody who does not have an appointment.

Since the CPA had noticed occasional shortages in the cash receipts records that were larger than normal for a small business he would have had to gather evidence Case 3 2 howard street jewelers inc make sure that a fraud was occurring.

It becomes easier to trace any shortcomings. This control measure will ensure that there is the concept of accountability among the employees. As a result, she should not have been responsible for all these duties.

It should be clear what every employee ought to be doing, and no one should be given control of more than one Case 3 2 howard street jewelers inc to help counter prospects of covering fraud. The responsibility that the CPA has to pursue this matter is dependent on the time of this fraud relating to what services were provided by the CPA.

However, since he did notice occasional shortages in the cash receipt records that seemed larger than normal for a small retail business; he should have mentioned it to the management.

In case the CPA was also offering auditing and other accounting services to the business, he had a responsibility of pursuing the matter. It was also mentioned that the CPA mentioned that there were occasional shortages in the cash receipts records that seemed larger than normal for a small retail business.

Through the information in the case, we know that Betty had access to all cash receipts and was in charge of recording all layaway sales, and daily sales. Another concept that this relates to is that no one individual should perform more than one of the following; recording transactions, authorizing transactions and maintaining custody over the assets.

Single person accessing the cash register: Question 3 Having an inventory safe: It is also dependent on what services the CPA is providing now.

The Levis ought to have embraced an active role by initiating segregation of duties as opposed to putting excessive trust on one individual.

Internal control concepts that the Levis overlooked or ignored: It was so material, that it almost forced the store to close. The liability that the CPA has in this case is common law liability. Since it is a privately owned company, the CPA will not have statutory liability. Even though this is a very small family owned business, an organizational structure is still necessary.

The Levis family should have taken the initiative of enacting periodic counting and comparison on the amounts that were on cash, layaways, inventory records and sales. The third reason I would not see the client right away is because the services this person needs can wait a few hours or even days.

The second reason I would send them away is because I did not have time to prepare and I would want to be sure that I knew enough about the industry and other factors so I would be able to not lose the client by sounding uneducated on the subject.

The CPA must display due diligence. Segregate the authorization of transactions, recording of transactions, and custody of the related assets. This should come in form of locks, physical barriers, and cameras to help protect the property within the premises from any loss.

The documentation of records should be accessible to management and key employees who deal directly with customers. So the answer to this question is dependent on how desperate I am for a new client. Betty should have been receiving authorization from the management of transactions such as layaways.

Case 2: Howard Street Jewelers, Inc

Once I did meet with them, there would be five internal control issues I would discuss with them. The main internal control concept the Levis ignored was segregation of duties.Howard Street Jewelers Case.

Autor: Nicolas • September 25, • Case Study • Words (3 Pages) • 4, Views. Page 1 of 3. Howard Street Jewelers, Inc. 1. Internal control concepts that the Levis overlooked or ignored.

View Test Prep - from ACCT at Northwestern University. CASE HOWARD STREET JEWELERS, INC.

Howard Street Jewelers Case

Synopsis A common nemesis of small businesses is employee theft. Small business owners who92%(13). Case Howard Street Jewelers, Inc. Admin; ; January 21, The responsibilities that the CPA would have had in this case were dependent on the role he was undertaking in the business.

If he was only offering tax services, he did not have a responsibility to pursue the matter. Howard Street Jewelers. Admin. No Image. HI. Case Howard Street Jewelers, Inc Notes 1. Betty was a longtime employee in Howard Street Jewelers and she was trusted by her employer, Lore Levi and Julius Levi.

2. Betty’s position was that took cash from the business and protected money from theft by altering the business’s accounting records. However, the theft scheme was discovered, Lore. Howard Street Jewelry Accounting Case Study on Internal Controls: 1.

2. The case states that the CPA served as their accountant for almost 40 years providing 3. I do not agree with dropping what I am working on to try to sell a new client on my services. So the answer to this question is dependent on how desperate I am for a new client.

Howard Street Jewelers Study. Uploaded by Patricia Joie Clamonte. Related Interests. Accounting And Audit; Business; Business (General) Howard Street Jewelers Inc | A Case Study Page 2 3. As a CPA, I do believe that it 5/5(2).

Case 3 2 howard street jewelers inc
Rated 4/5 based on 98 review