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Nov 05, 2006 · Case 3.2 – Howard Street Jewelers, Inc. Essay...jewelry, putting items in layaway, recording sales, maintain cash receipts and accepted the cash. Betty was allowed to have incompatible duties, which allowed her to commit fraud of $350,000.
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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.
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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.
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Howard Street Jewelers Inc A Case Study Page 1 1. When Mrs. Levi informed the CPA about her suspicions regarding Betty, the CPA does not accrue any responsibility in the pursuance of the matter, for5/5(2)
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Boris Bernstein 20252771 Howard Street Jewellers, Inc. Case 1. Identify the internal control concepts that the Levis overlooked or ignored. 2. When Mrs. Levi informed the CPA of her suspicions regarding Betty, what responsibilities, if any, did the CPA have to pursue this matter?
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Get Your Custom Essay on Case Study of Howard Street Jewelers Just from $13,9/Page Get custom paper Betty was able to do all three; selling jewelry, putting items in layaway, recording sales, maintain cash receipts and accepted the cash.
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Case 3.2 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 Levi suspected that Betty was the theft.
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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.
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