Question

In: Accounting

Analyze three (3) internal control weaknesses of each major subsystem (Purchases System, Payroll System, Fixed Assets...

Analyze three (3) internal control weaknesses of each major subsystem (Purchases System, Payroll System, Fixed Assets System, Sales Order Processing, and Cash Receipts System

Solutions

Expert Solution


Related Solutions

While reviewing Fashion Designers payroll computer system you note the following weaknesses in internal control: i)...
While reviewing Fashion Designers payroll computer system you note the following weaknesses in internal control: i) When the weekly timesheets are received the details are keypunched into a transaction file. An edit report is then generated and the details are agreed back to the timesheets. Once all the timesheets have been input the employees’ master file is then updated by a batch program. There is no output from the batch update program. ii) A special password and user ID is...
While reviewing Fashion Designers payroll computer system you note the following weaknesses in internal control: i)...
While reviewing Fashion Designers payroll computer system you note the following weaknesses in internal control: i) When the weekly timesheets are received the details are keypunched into a transaction file. An edit report is then generated and the details are agreed back to the timesheets. Once all the timesheets have been input the employees’ master file is then updated by a batch program. There is no output from the batch update program. ii) A special password and user ID is...
Correcting internal control weaknesses Each of the following situations has an internal control weakness.
Correcting internal control weaknesses Each of the following situations has an internal control weakness. a. Upside-Down Applications develops custom programs to customers’ specifications. Recently, development of a new program stopped while the programmers redesigned Upside-Down’s accounting system. Upside-Down’s accountants could have performed this task. b. Norma Rottler has been your trusted employee for 24 years. She performs all cash handling and accounting duties. Norma just purchased a new luxury car and a new home in an expensive suburb. As owner...
REQUIRED: For each of the weaknesses listed below, identify an internal control that addresses those weaknesses....
REQUIRED: For each of the weaknesses listed below, identify an internal control that addresses those weaknesses. Note, the internal control CAN BE, BUT DOES NOT HAVE TO BE, an input edit control. LIMIT YOUR ANSWER TO ONE PAGE. ORGANIZE YOUR ANSWER AS FOLLOWS: WEAKNESS INTERNAL CONTROL Terminated employees remain on the payroll Unauthorized vendors are used Payments are made for quantities not received Cash is lost in the mailroom The wrong price is entered on sales orders Shipments go unbilled...
1)Make recommendations in order to establish a strong internal control system for the payroll process of...
1)Make recommendations in order to establish a strong internal control system for the payroll process of Mulgoviey Story Cut Farming Company
Analyze the current system and identify specific internal control problems Inventory control department receives a list...
Analyze the current system and identify specific internal control problems Inventory control department receives a list of items in inventory and total amounts in each category. The inventory control clerk, Keith Fernando, is given the quantity-onhand for all gloves (softball, infielder, outfielder, catcher, and pitcher). The quantity-onhand of each inventory is calculated by the inventory control system, called PICS (Physical Inventory Control Scanner). PICS is an automated computer system used to determine the quantity-on-hand of inventories at specific times. It...
Analyze the current system and identify specific internal control problems. The cash receipts system starts when...
Analyze the current system and identify specific internal control problems. The cash receipts system starts when the wholesalers send back the remittance advice with their payment. This allows Craig Nelson, the mail room clerk, to collect the payment from the customer and process the cash receipt. Nelson then records the cash receipts in the cash receipts journal. Nelson prepares the deposit slips for the funds to be deposited into the bank along with the checks. The remittance advice is sent...
Internal control relates to an organization’s achievement of objectives in three major categories. Which of the...
Internal control relates to an organization’s achievement of objectives in three major categories. Which of the following best pairs one of the categories with a specific example? Effectiveness & efficiency of operations, fulfilling the requirements of the Foreign Corrupt Practices Act Effectiveness & efficiency of operations, listing appropriate assets at their current market value Reliability of financial reporting, fulfilling the requirements of the Foreign Corrupt Practices Act Reliability of financial reporting, listing appropriate assets at their current market value
Which of the following best describes the activities of the accounting function? a. inventory control, accounts payable, fixed assets, and payroll ...
Which of the following best describes the activities of the accounting function? a. inventory control, accounts payable, fixed assets, and payrollb. fixed assets, accounts payable, cash disbursements, and cost accountingc. purchasing, cash receipts, accounts payable, cash disbursements, and payrolld. inventory control, cash receipts, accounts payable, cash disbursements, and payrolle. inventory control, cost accounting, accounts payable, cash disbursements, and payroll
Analyze the current system and identify specific internal control problems The cash disbursements process begins with...
Analyze the current system and identify specific internal control problems The cash disbursements process begins with the accounts payable department. Each day, the AP clerk, Pushkin searches the open AP file (including the PO, RR, and invoice) to find any items that are due and sends these three forms (known as the voucher packet) to cash disbursements department. The voucher packet is received by Wally Mayfield, the cash disbursements clerk. Mayfield reviews the documents for completeness and accuracy and then...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT