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During 1989 through 1992, Lyell Metal maintained certain
books and records relating to its purchase of scrap metal by
check and by cash.
With regard to Lyell Metal's purchase of scrap metal by
check, Lyell Metal's books and records reflect the amount and
date of the checks, the payee, the nature and quantity of scrap
metal purchased, and other information regarding each
transaction.
With regard to Lyell Metal’s purchase of scrap metal by
cash, Lyell Metal's records are not as complete as they are for
the purchase of scrap metal by check. With regard to the
purchase of scrap metal by cash, upon receipt in Lyell Metal’s
yard of scrap metal from customers, Lyell Metal’s yard employees
would prepare receipts in triplicate showing unit cost, total
cost, metal type, and weight of scrap metal received. The
customers would then present the receipts to the cashier in Lyell
Metal’s front office, and the cashier would pay customers in cash
the amount indicated on the receipts. For each transaction, the
cashier would verify the information on the receipt for accuracy,
would give one of the copies of the receipt to the customer, and
would retain two copies of the receipt.
During 1989 through 1992, at the end of each business day,
one of Lyell Metal’s office clerks would compare and verify
conformity of the records of the total amount of cash that Lyell
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Last modified: May 25, 2011