Two Parties other than O'Conner Who can be Harmed by Theftdiscussions

Discussions
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Discussion 8:
Identify two parties other than O'Conner who can be harmed by this theft. In what ways can they be harmed?
Apart from O’Conner, there are other parties who can be affected by this theft. One of the parties is the government through the tax system. In order to determine the amount of income tax that O’Conner needs to pay to the government tax system, the government will rely on bank records. This bank records however have a lower balance than what it is indicated in the balance sheet. This means, therefore that O’Conner will have to pay a reduced amount of tax. Another party that can be affected with this theft is the prospective buyers of the Lansing property. Any buyer has the right to know the true financial position of the property. Therefore, this theft deprives prospective buyers this right of information. Buyers may be misguided into buying a property due to wrong information resulting from the theft. Furthermore, buyers may also shy away from buying a property due to wrong information.
Discuss the role accounting plays in this situation. What internal controls could be put in place to prevent this type of theft?
Accounting plays a significant role in this situation. Through careful auditing and reconciliation of accounts, one can be able to detect any theft and fraud in any business. In this situation, both O’Conner and any other persons interested in the property should carry out audits in all the financial statements of the company. O’Conner should conduct regular audits in all areas of the business accounting records especially in reconciliation records. As part of internal control, O’Conner should reconcile all financial statements on a monthly basis. O ‘Conner should use an independed party to do all bank reconciliations. He should also discourage all related party transactions and centralize all cash receipts if possible. In addition, he should use a system of checks and balances that ensures no single person has control over all parts of financial transaction of the property.
Discussion 9
List one way that a person can be unethical when considering accounts receivable in a business. Try not to repeat an idea that was previously posted by a classmate.
For your unethical practice, how can you help reduce the risk in the business?
AThere are many ways that a person may become unethical when considering accounts receivables. One of the ways is through understating sales or false receipts. This is one of the most common unethical behaviors in accounts receivables accounts. In order to curb this risk in the company, one should never trust their employees or management that deal with accounts. It is important also to have a working and efficient internal control. For O’Conner, it will be important to regularly determine whether the company assets are at an...