Management and Organizational Studies 3367A/B Chapter Notes - Chapter 9: Purchase Order, Accounts Receivable, Shipping List

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3367A/B
• Professor: Maria Ferraro

Document Summary

Physical assets including inventory and equipment were the most commonly misappropriated noncash asset. Noncash misappropriation schemes: misuse (company supplies, computers, office equipment) Need to hire additional employees to compensate. Unauthorized use of equipment can mean additional wear and tear sooner or more often: unconcealed larceny (walk off with company property) Many of the employees who steal company property are highly trusted. Some employees know their co-workers are stealing but refrain from reporting it. Assets misappropriated after-hours or mailed to perpetrator. Sale is not rung up but the accomplice takes the merchandise. Accomplice may return merchandise for cash: prevention and detection. Physical inventory counts in a timely manner. Segregate the duties of requisitioning, purchasing, and receiving. Segregate the duties of payables, purchasing, and receiving. Track those who enter secure areas through access logs. Suspend shipping and receiving activities during physical counts. Independently follow-up on customer complaints: asset requisitions and transfers.