Chapter 6 Employee Frawd and the Awdr of Cash 269 EXHIBIT 6.52.1 Schedule of Int

Question

Chapter 6 Employee Frawd and the Awdr of Cash 269 EXHIBIT 6.52.1 Schedule of Interbank Transfers c-5 EVERREADY CORPORATION Schedule of Interbank Transfers December 31,2017 Date Date Disbursing Account Receiving Account Date per Bank Check Bank 417 1st National 1601 1st National 1193/ 31-Decb 31-Decm 1st National Payroll 31-Dec 31-Dec. 19621st National Date per Amount Books 10,463/ 24-Dec 24-Decm1st National Payroll 9,9714 08-Jan Date per Bank 24-Decn Bank 08-Janm 1st National Payro 08-Jan 08-Jan n Taced fom cash disbaniements journal Chesk property listed as ousstuinding on hank recoeciliation Vuched deposit cleared in bank statement Taced from cash receipts jourl .Vuwbaddepasit cleared in bank staternett. Nae We scanned the cash disbursenments and cash receipts journals for checks to and deposits from other bank accounts Asked about the Citizen National Bank transactions, EverReady's chief financial offi- cer readily admitted the existence of an off-books bank account. He explained that it was used for financing transactions in keeping with normal practice in the construction industry. He gave the auditors the December and January bank statements for the account at Citizen National Bank. In it, the auditors found the following: Citizen Natlional Bank Check Payable to Amount Dated Cleared Bank 4050 1st National $10,000 23-Dec 29-Dec 4051 Chase Bank 12.000 28-Dec 31-Dec 4052 1st National 12,000 30-Dec 05-Jan 4053 Chase Bank 14,000 4-Jan 07-Jan 4054 1st National 20,000 -Jan 13-Jan Received from Amount Date Chase Bank $1,000 22 Dee Chase Bank 15,000 30-Dec 1st National Chase Banlk 10000 05-Jan 12,000 07-Jan When asked about the Chase Bank transactions, EverReady's chief financial officer admitted the existence of another off-books bank account, which he said was the personal account of the principal stockholder. He explained that the stockholder often used it to finance EverReady's operations, He gave the auditors the December and January bank state- ments for this account at Chase Bank; in it, the auditors found the following: Chase Bank Check # 2220 2221 Payable to Citizen National Bank Citizen National Bank Citizen National Bank 11,000 15,000 12.000 Dated 22-Dec 30-Dec Cleared Bank 28-Dec 05-Jan 12-Jan

Explanation / Answer

EVERREADY CORPORATION
Schedule of Interbank Transfers
December 31, 2017

Prepared __________
        Date __________
Reviewed __________
        Date __________

Disbursing Account

Receiving Account

Check

Bank

Amount

Date per
Books

Date per
Bank

Bank

Date per
Books

Date per
Bank

1417

1st National

10,463

24-Dec

24-Dec

1st National Payroll

24-Dec

24-Dec

1601

1st National

11,593

31-Dec

31-Dec

1st National Payroll

31-Dec

31-Dec

1982

1st National

  9,971

08-Jan

08-Jan

1st National Payroll

08-Jan

08-Jan

4050

Citizen National Bank

10,000

23-Dec

29-Dec

1st National

23-Dec

29-Dec

4051

Citizen National Bank

12,000

28-Dec

31-Dec

Chase Bank

28-Dec

31-Dec

4052

Citizen National Bank

12,000

30-Dec

05-Jan

1st National

30-Dec

05-Jan

4053

Citizen National Bank

14,000

4-Jan

07-Jan

Chase Bank

4-Jan

07-Jan

4054

Citizen National Bank

20,000

8-Jan

13-Jan

1st National

8-Jan

13-Jan

Chase Bank

11,000

22-Dec

Citizen National Bank

22-Dec

Chase Bank

15,000

30-Dec

Citizen National Bank

30-Dec

1st National

10,000

05-Jan

Citizen National Bank

05-Jan

Chase Bank

12,000

07-Jan

Citizen National Bank

07-Jan

2220

Chase Bank

11,000

22-Dec

28-Dec

Citizen National Bank

22-Dec

28-Dec

2221

Chase Bank

15,000

30-Dec

05-Dec

Citizen National Bank

30-Dec

05-Jan

2222

Chase Bank

12,000

7-Dec

12-Dec

Citizen National Bank

7-Jan

12-Jan

Citizen National Bank

12,000

28-Dec

Chase Bank

28-Dec

Citizen National Bank

14,000

04-Jan

Chase Bank

04-Jan

B. Schedule of bank as of December 31, 2017

1st National Bank(9,971+10,463+11,593+10,000+10,000) = 52, 027

Chase Bank(12,000+12,000+15,000+12,000+12,000) = 63,000

Citizen Bank(12,000+14,000+20,000+11,000+15,000+11,000+14,000) = 97,000

________________________________

212,027

……………………………………………………

  Schedule of actual balance as of December 31, 2017

1st National Bank(9,971+10,463+11,593+10,000+12,000+10,000) = 64, 027

Chase Bank(12,000+12,000+12,000+12,000) = 48,000

Citizen Bank(14,000+20,000+11,000+15,000+11,000+15,000+14,000) = 100,000

………………………………………..

212,027

………………………………………….

Schedule of bank as of January 8, 2018

1st National Bank(9,971+10,463+11,593+10,000+12,000) = 54, 027

Chase Bank(12,000+12,000+12,000+14,000+14,000) = 64,000

Citizen Bank(20,000+11,000+15,000+10,000+12,000+11,000+15,000) = 94,000

-------------------------------------------

212,027

------------------------------------------------

Schedule of actual balance as of January 8, 2018

1st National Bank(9,971+10,463+11,593+10,000+12,000+20000) = 74, 027

Chase Bank(12,000+12,000+12,000+14,000+) = 52,000

Citizen Bank(11,000+15,000+10,000+12,000+11,000+15,000+12,000) = 86,000

---------------------------------------------

212,027

EVERREADY CORPORATION
Schedule of Interbank Transfers
December 31, 2017

Prepared __________
        Date __________
Reviewed __________
        Date __________

Disbursing Account

Receiving Account

Check

Bank

Amount

Date per
Books

Date per
Bank

Bank

Date per
Books

Date per
Bank

1417

1st National

10,463

24-Dec

24-Dec

1st National Payroll

24-Dec

24-Dec

1601

1st National

11,593

31-Dec

31-Dec

1st National Payroll

31-Dec

31-Dec

1982

1st National

  9,971

08-Jan

08-Jan

1st National Payroll

08-Jan

08-Jan

4050

Citizen National Bank

10,000

23-Dec

29-Dec

1st National

23-Dec

29-Dec

4051

Citizen National Bank

12,000

28-Dec

31-Dec

Chase Bank

28-Dec

31-Dec

4052

Citizen National Bank

12,000

30-Dec

05-Jan

1st National

30-Dec

05-Jan

4053

Citizen National Bank

14,000

4-Jan

07-Jan

Chase Bank

4-Jan

07-Jan

4054

Citizen National Bank

20,000

8-Jan

13-Jan

1st National

8-Jan

13-Jan

Chase Bank

11,000

22-Dec

Citizen National Bank

22-Dec

Chase Bank

15,000

30-Dec

Citizen National Bank

30-Dec

1st National

10,000

05-Jan

Citizen National Bank

05-Jan

Chase Bank

12,000

07-Jan

Citizen National Bank

07-Jan

2220

Chase Bank

11,000

22-Dec

28-Dec

Citizen National Bank

22-Dec

28-Dec

2221

Chase Bank

15,000

30-Dec

05-Dec

Citizen National Bank

30-Dec

05-Jan

2222

Chase Bank

12,000

7-Dec

12-Dec

Citizen National Bank

7-Jan

12-Jan

Citizen National Bank

12,000

28-Dec

Chase Bank

28-Dec

Citizen National Bank

14,000

04-Jan

Chase Bank

04-Jan

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