Homework SourseQ 1 Recommend internal control procedures that can provide p
Q 1) Recommend internal control procedure(s) that can provide protection against the following threats?
1. An employee issues credit memos to write-off account balances for friends
2. Workers on the shipping dock steal goods, claiming that the inventory shortages reflect errors in the inventory records.
3. An employee fails to bill customers for the goods which are shipped to them, which results in the loss of assets and erroneous data about sales, inventory, and accounts receivable.
4. An employee uses the same sales order twice to authorize another shipment of the same goods to the same customer.
5. Customers are billed for the quantity ordered, but the quantity shipped is actually less because some items have been back ordered.
6. The cashier steals funds by cashing several checks from customers.
Q 2) Summarize the major processes in sales and revenue cycle.
Q 1) Recommend internal control procedure(s) that can provide protection against the following threats?
1. An employee issues credit memos to write-off account balances for friends
2. Workers on the shipping dock steal goods, claiming that the inventory shortages reflect errors in the inventory records.
3. An employee fails to bill customers for the goods which are shipped to them, which results in the loss of assets and erroneous data about sales, inventory, and accounts receivable.
4. An employee uses the same sales order twice to authorize another shipment of the same goods to the same customer.
5. Customers are billed for the quantity ordered, but the quantity shipped is actually less because some items have been back ordered.
6. The cashier steals funds by cashing several checks from customers.
Q 2) Summarize the major processes in sales and revenue cycle.
Q 1) Recommend internal control procedure(s) that can provide protection against the following threats?
1. An employee issues credit memos to write-off account balances for friends
2. Workers on the shipping dock steal goods, claiming that the inventory shortages reflect errors in the inventory records.
3. An employee fails to bill customers for the goods which are shipped to them, which results in the loss of assets and erroneous data about sales, inventory, and accounts receivable.
4. An employee uses the same sales order twice to authorize another shipment of the same goods to the same customer.
5. Customers are billed for the quantity ordered, but the quantity shipped is actually less because some items have been back ordered.
6. The cashier steals funds by cashing several checks from customers.
Q 2) Summarize the major processes in sales and revenue cycle.
Solution
Internal controls for employee issues credit memos to write-off account balance for friends
Internal controls over workers on the shipping dock steal goods:
Controls over non-billing to customers.
Controls over delivery of another shipment of goods against same sales order
Delivery of goods at lesser quantity then actually billed in invoice
Misappropriation of amount collected from customers
Major process in sales and revenue cycle:
