Johnson Computers repairs computers, along with selling andinstalling software on computers. Brian handles the repairs for thecomputers and is constantly asked by family and friends forassistance when they experience computer issues. In an effort toprovide more personal income, Brian started doing repairs from hishome on weekends and evenings, as a part-time venture. As most ofthe business is for family and friends, he does not want to chargeas much as Johnson Computers does. During the budget process, Brianincreased the budget for computer parts, and once approved, startedto buy as many as the budget would allow. For the additional partsnot needed by Johnson Computers, Brian took the parts home to usein his business. Brian makes sure the amount spent never exceedsthe budgeted amount.
Explain how Brian’s use of the budget is considered fraudulent,and how the budget process should have found this issue.
What policies and procedures should Johnson Computers have inplace to protect the business assets and prevent the businessrisk?
