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YET CONSTRUCTION

The Sea-Mist-A Fine Dining Establishment

The Sea Mist is a fine dining establishment, which is open seven days a week. The Sea-Mist serves lunch and dinner and has a large clientele base. The Sea-Mist meals are all prepared fresh, and one can get anything-from lobster and other seafood food delicacies to filet mignon.

The Sea Mist’s owns and operates its 40 restaurants and all its employees are paid by the corporate headquarters. All receipts are sent to the corporate office to the accounting department. All audits are completed by an independent company and there has been no audit issues or red flags raised. The company trades its stock on the New York Stock Exchange.

The company internal auditors have noticed a decrease in sales revenues from various stores in the Florida and Georgia markets. The expenses for food items along with insurance and employment costs have gone up, but no one single restaurant shows any significant decrease in revenues. Additionally, several employees in the accounting department enter payments and wire funds for the company to the various banks. A tracking system is in place for all computers, however, all computers are left on and passwords have and are exchanged in the department.

The company believes that one or more of the accounting personnel is moving funds out. An internal audit was conducted to find out why expenses are up and revenues are down. The 5-year comparison or time line shows a decrease in revenues of $255,000. The internal audit was conducted and the auditors have narrowed the lists of likely suspects to three individuals. All three have access to all records including all entries and computer files.

Internal Audit has discovered the funds were wired to an account under the name of YET. CONSTRUCTION. The only one who can sign on the account is Eddie Yet, President of the company. The discovery of the duplicate company was not noticed at first by the auditor as the corporation is building additional restaurants and expanding and has YET CONST INC building their restaurants.

The Suspects:

Janet

Accounting Supervisor, CPA; 47 YOA; Salary $95,000/year; Owns her home; Married and has two kids in college-FSU; Drives a four year old Lexus; 10 years with the company; Has access to all systems/programs; Husband has his own construction business; and is outgoing-loves to party.

Marge

Assistant Accounting Supervisor, CPA; 45 YOA; Salary $82,000/year; Owns her own home; Married with three kids in college-FAU; drives a four year old Volvo; 10 years with the company; Husband has his own construction business; and is outgoing and well liked-loves to party

Sandy

Assistant Accounting Supervisor, CPA; 44 YOA; Salary $78,000/year; Owns her own home; Married with two kids in college-UCF; drives a four year old BMW; 10 years with the company; Husband has his own construction; and is outgoing and well liked-loves to party.

Instructions:

Using the following questions as a guide, you will complete a 3-5 page, APA formatted paper, with no less than 5 scholarly, peer-reviewed articles that are no older than 5 years [No Wikipedia, NO newspapers]. Remember, the title page abstract and reference do NOT count as part of the 3 to 5 page requirement. This will be a WORD document format. You can use these as a guide but of course, you can add to it.

*need abstract, title page and reference page*

1. Who would you talk to first? Why?
2. What would you ask them? Why?
3. Who do you think did it? How and Why?