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AC astralian College of Kuwait Assessment Tool and Marking Guide DECISION CASE STUDY Environmental Concerns, Inc., has poor internal control. Recently, Oscar Benz, the manager, has suspected the bookkeeper of stealing. Details of the business's cash position at September 30 follow. The Cash account shows a balance of $10,402. This amount includes a September 30 deposit of $3,794 that does not appear on the September 30 bank statement. The September 30 bank statement shows a balance of $8,224. The bank statement lists a $200 bank collection, an $8 service charge, and a $36 NSF check. The accountant has not recorded any of these items. At September 30, the following checks are outstanding: a- b- c. Check No. 154 256 278 291 292 293 Amount $116 150 853 990 206 145 d. The bookkeeper receives all incoming cash and makes the bank deposits. He also reconciles the monthly bank statement. Here is his September 30 reconciliation: Balance per books, September 30. Add: Outstanding checks... $10,402 1,460 200 12,062 Bank collection Less: Deposits in transit $3,794 Service charge NSF check 36(3,838) S 8,224 Balance per bank, September 30.. Requirement Benz has requested that you determine whether the bookkeeper has stolen cash from the business and, if so, how much. He also asks you to explain how the bookkeeper attempted to conceal the theft. To make this determination, you perform proper bank reconciliation. There are no bank or book errors. Assessment Tool and Marking Guide Issue No.2 Revisicen No. 6

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