76. Melanie Diggers is an internal auditor for Atlantic Equipment Rental and Sales. While performing a routine review of one of the company’s bank accounts, she noticed an unusual “adjusting entry” to the account on the general ledger. She also found that several checks that had cleared the bank in the last few months were absent from the stack of canceled checks. She requested copies of these checks from the bank and discovered that they were all made payable to the company’s controller who has check signing authority on the account. The controller is also responsible for performing the bank reconciliation and recording month-end journal entries. Which of the following schemes do these signs most likely indicate?
a. Concealed check scheme
b. False voids scheme
c. Authorized maker scheme
d. Forged maker scheme
answer : C Authorized maker scheme and A Concealed check scheme
Explanation to the answer:
Generally at the end of the month controller perform the function of Bank Reconciliation. In the bank reconciliation they add cancel cherub to the bank and less the bank charges to the bank balance so the balance as per company record and bank passbook match .Here in this case unusual entry has been passed so it should be Concealed check scheme and may be . Authorized maker scheme
