A jury convicted the treasurer of GTX Company of stealing

A jury convicted the treasurer of GTX Company of stealing cash from the company. Over a three-year period, the treasurer allegedly took almost $100,000 and attempted to cover the theft by manipulating the bank reconciliation.

Required

What is a likely way that a person would manipulate a bank reconciliation to cover a theft? Use the data from Exercise 18-15 to illustrate how $1,000 could be stolen and covered up. What internal control arrangement could have avoided this theft?

In Exercise 18-15

Note collection………………………………………………………………….. $ 2,500

Bank service charges …………………………………………………………. 80

Interest earned………………………………………………………………….. 500

Outstanding cheques as of January 31, 2017 ……………………… 6,450

Cash in the bank per the general ledger account ………………. 31,000

Cash according to the January 31, 2017, bank statement …… 36,938

A jury convicted the treasurer of GTX Company of stealing