-
List the weaknesses and
suggest improvements in internal controls related to revenue
cycle.
Identify weaknesses in the internal control structure relating
to the activities of
1) warehouse clerk
2)bookkeeper #1
3)bookkeeper #3
4)collection clerk
SALES CLERK WAREHOUSE CLERK BOOKKEEPER #1 BOOKKEEPER #2 COLLECTION CLERK RECEIVES CUSTOMER ORDER BY PHONE APPROVED SALES ORDER 1 SALES ORDER SALES ORDER INVOICE CUSTOMER CHECK FROM MAIL CLERK 2 1 INVOICE 3 PREPARES 4-COPY SALES ORDER PREPARES SHIPPING ADVICE AUTHORIZED CUSTOMER'S CREDIT MATCHES INV &...
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11A–1.A summary of the controls for the revenue and cash receipts
cycle of Keystone Computers & Networks, Inc., appears in this
appendix.For the following three controls over sales, indicate one type
of error or fraud that the control serves to prevent or detect.
Organize your solution as follows:ControlError or Fraud ControlledApplication controls are applied when customer orders are
entered by the sales order clerk.The computer assigns numbers to sales invoices when they are
prepared.Monthly statements are mailed to customers.For the...
-
Accounting information system
please prepare a table of entities and activities for
Narrative 1. An example of the
table of entities and activities can be found in Table
4.2
there is no extra information
Narrative 1: Freshplace Grocery At Freshplace Grocery, customers give their purchases to a sales clerk along with cash. The sales clerk enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives...
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10-25 LOB The following are deficiencies in internal controls over cash. For each deficiency indicate what substantive audit procedure(s) should be performed to determine whether any material misstatements exist. Consider each deficiency independently of the others. While each defi- ciency poses potential problems, identify two that would heighten your professional skepticism the most and explain your rationale, a. The person who opens the mail prepares the deposit when the cashier is not available. b. If a customer does not submit...
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Create a system flowchart and review the controls in the
process. See attached document for details.
Flowchart Assignment Business Process Diagramming and Control Evaluation The project is based on the business processes and controls for Order Entry/ Shipping and Billing / Cash Receipts at NashGulch Furnishings. NashGulch Furnishing sells high end, i.e. expensive and unique, home and office furnishings to design studios, building contractors, and architects. Customers place orders over the phone to the NashGulch customer fulfillment center, Nash Gulch...
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At Kingston Industries, the revenue processes are conducted by five employees. The five employees are the sales clerk, warehouse clerk, accountant 1, accountant 2, and the collection clerk. A description of their duties is as follows: A. The sales clerk receives customer orders by phone. She prepares a four-copy sales order form. She files one copy, one copy goes to the warehouse clerk, one copy goes to accountant 1, and one copy is mailed to the customer. B. After receiving...
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At Kingston Industries, the revenue processes are conducted by
five employees. The five employees are the sales clerk, warehouse
clerk, accountant 1, accountant 2, and the collection clerk. A
description of their duties is as follows:
The sales clerk receives customer orders by phone. She prepares
a four‐copy sales order form. She files one copy, one copy goes to
the warehouse clerk, one copy goes to accountant 1, and one copy is
mailed to the customer.
After receiving a sales...
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Cloud 9 - Continuing Case Sharon Gallagher and Josh Thomas have
assessed the internal controls at Cloud 9 as being effective at an
entity level. This means that, at a high level, the company
demonstrates an environment where potential material misstatements
are prevented or detected. Answer the following questions based on
the information presented for Cloud 9 in the appendix to this text
and the current and earlier chapters. You should also consider your
answers to the case-study questions in...
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1.Which of the following controls would provide the most
assurance to management that recorded sales actually occurred?
A) Statements are sent to customers at the end of each month,
and customer complaints are investigated B) Responsibilities for
recording a customer order and shipping the products are
segregated
C) A credit sale is recorded only after a credit check is
performed
D) Shipping documents are prepared for every shipment made and
filed in the shipping department
44. Which of the following...
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The following is the description of sales and cash receipts for the Lady’s Fashion Fair, a retail store dealing in expensive women’s clothing. Sales are for cash or credit, using the store’s own billing rather than credit cards.Each salesclerk has her own sales book with prenumbered, three-copy, multicolored sales slips attached, but perforated. Only a central cash register is used. It is operated by the store supervisor, who has been employed for 10 years by Alice Olson, the store owner....
List the weaknesses and
suggest improvements in internal controls related to revenue
cycle.
Identify weaknesses in the internal control structure relating
to the activities of
1) warehouse clerk
2)bookkeeper #1
3)bookkeeper #3
4)collection clerk
SALES CLERK WAREHOUSE CLERK BOOKKEEPER #1 BOOKKEEPER #2 COLLECTION CLERK RECEIVES CUSTOMER ORDER BY PHONE APPROVED SALES ORDER 1 SALES ORDER SALES ORDER INVOICE CUSTOMER CHECK FROM MAIL CLERK 2 1 INVOICE 3 PREPARES 4-COPY SALES ORDER PREPARES SHIPPING ADVICE AUTHORIZED CUSTOMER'S CREDIT MATCHES INV &...
11A–1.A summary of the controls for the revenue and cash receipts
cycle of Keystone Computers & Networks, Inc., appears in this
appendix.For the following three controls over sales, indicate one type
of error or fraud that the control serves to prevent or detect.
Organize your solution as follows:ControlError or Fraud ControlledApplication controls are applied when customer orders are
entered by the sales order clerk.The computer assigns numbers to sales invoices when they are
prepared.Monthly statements are mailed to customers.For the...
Accounting information system
please prepare a table of entities and activities for
Narrative 1. An example of the
table of entities and activities can be found in Table
4.2
there is no extra information
Narrative 1: Freshplace Grocery At Freshplace Grocery, customers give their purchases to a sales clerk along with cash. The sales clerk enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives...
10-25 LOB The following are deficiencies in internal controls over cash. For each deficiency indicate what substantive audit procedure(s) should be performed to determine whether any material misstatements exist. Consider each deficiency independently of the others. While each defi- ciency poses potential problems, identify two that would heighten your professional skepticism the most and explain your rationale, a. The person who opens the mail prepares the deposit when the cashier is not available. b. If a customer does not submit...
Create a system flowchart and review the controls in the
process. See attached document for details.
Flowchart Assignment Business Process Diagramming and Control Evaluation The project is based on the business processes and controls for Order Entry/ Shipping and Billing / Cash Receipts at NashGulch Furnishings. NashGulch Furnishing sells high end, i.e. expensive and unique, home and office furnishings to design studios, building contractors, and architects. Customers place orders over the phone to the NashGulch customer fulfillment center, Nash Gulch...
At Kingston Industries, the revenue processes are conducted by five employees. The five employees are the sales clerk, warehouse clerk, accountant 1, accountant 2, and the collection clerk. A description of their duties is as follows: A. The sales clerk receives customer orders by phone. She prepares a four-copy sales order form. She files one copy, one copy goes to the warehouse clerk, one copy goes to accountant 1, and one copy is mailed to the customer. B. After receiving...