It was later discovered that the supplier was a fictitious (fake) supplier and the payment was deposited into the bank account in the name of Mable’s relative.

One day, the cashier was checking the sales from the previous night and realised that the sales amount banked in by Mabel was $9 230 instead of $9 730 as she remembered.

He realised that a bank transfer of $8 500 received from Ideal Homes was recorded as $3 500 in the cash at bank account in the ledgers.

He is very concerned that the cash at bank account may have more errors that has not been spotted.

She oversees the payment and receipt of money into the business bank account.

She is solely responsible to prepare the cheques and payment vouchers for the Financial Controller to approve.

She is also the only one in charge of recording of journals and ledgers of any money received and paid in the form of cheques or cash into the business bank account.

(1) Yellow Post

What is wrong? What values/ethics was violated?

(2) Green Post

How does this affect the business?

(3) Blue Post

What could be put in place to prevent this incident?