WK5 Acct 202 CT


JohnsonComputers repairs computers, along with selling and installing software oncomputers. Brian handles the repairs for the computers and is constantly askedby family and friends for assistance when they experience computer issues. Inan effort to provide more personal income, Brian started doing repairs from hishome on weekends and evenings, as a part-time venture. As most of the businessis for family and friends, he does not want to charge as much as Johnson Computersdoes. During the budget process, Brian increased the budget for computer parts,and once approved, started to buy as many as the budget would allow. For theadditional parts not needed by Johnson Computers, Brian took the parts home touse in his business. Brian makes sure the amount spent never exceeds thebudgeted amount.

Explainhow Brians use of the budget is considered fraudulent, and how the budgetprocess should have found this issue.
Whatpolicies and procedures should Johnson Computers have in place to protect thebusiness assets and prevent the business risk?