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Johnson Computers repairs computers, along with selling and installing software on computers. Brian handles the repairs for the computers and is constantly asked by family and friends for assistance when they experience computer issues. In an effort to provide more personal income, Brian started doing repairs from his home on weekends and evenings, as a part-time venture. As most of the business is for family and friends, he does not want to charge as much as Johnson Computers does. 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 the additional parts not needed by Johnson Computers, Brian took the parts home to use in his business. Brian makes sure the amount spent never exceeds the 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 in place to protect the business assets and prevent the business risk?
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