Johnson Computers repairs computers, along with selling and installing software on computers. Brian handles the repairs...

90.2K

Verified Solution

Question

Accounting

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 Brianâ€™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?

Answer & Explanation Solved by verified expert

4.2 Ratings (860 Votes)

All businesses and nonprofit organizations face the risk unexpected events such as a natural disaster loss of funds through theft or injury to staff customers or visitors on your premises could impact operations Any of these events can cost your organization money or cause your organization to permanently close With a risk management plan you can prepare for the unexpected minimizing risks and extra costs before they happen By considering potential risks or events before they happen and having a risk management plan in place you can save money and protect See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member