Question
In: Accounting
BillDave Supplies Ltd, employs 100 salesmen, each of whom covers a different area and is supplied...
BillDave Supplies Ltd, employs 100 salesmen, each of whom
covers a different area and is supplied with a car. At the end of
each week, each salesman submits an expense claim on a pre-printed
form with supporting vouchers attached. Expenditure is on fuel
together with invoices for hotel accommodation, meals and
entertainment are not attached.
Claims are scrutinized by the Assistant Accountant. She raises
any queries with the salesmen concerned and makes out cheques for
signature by the two Directors.
The amount of salesmen’s expenses paid out annually is
material to the financial statements. Required:
a) Discuss the shortcomings of this system.
b) Suggest ways in which it could be improved.
c) List the test of control that the auditor might perform on
this system.
Solutions
Expert Solution
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ekkarill92 answered 2 years agoRelated Solutions
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