control weakness
Q: Upon receipt of the shipping notice, the billing clerk updates the customer's account receivable and…
A: Transaction Process System: Transaction process system can be defined as a system designed to…
Q: The sales department clerk receives hard-copy customer orders and manually prepares a six-part…
A: Answer: The weakness in this process is duplication of work is being made and it has made overall…
Q: In a manual system, after which event in the sales process should the customer be billed?
A: Sales Process: Sales Process can be defined as trade of goods and services provided by the trader of…
Q: SOPP of XYZ Limited The sales department receives the unstandardised sales order since customer…
A: Internal control weakness refers to a situation where implemented internal controls are not applied…
Q: Sawicki Music Supply is a mail-order business that accepts merchandise orders by telephone and mail.…
A: Data Flow Diagram: Data flow diagram can be defined as the method to show the data flow of a process…
Q: Identify which department has stewardship over the following journals,ledgers,and files. a.customer…
A: The answer is as fallows
Q: In the revenue cycle (for sales on credit), a customer places an order for a certain product. Which…
A: Every time an order is received by an organisation, there is whole set of process that needs to be…
Q: Which document helps to ensure that the receiving clerks actually count the number of goods…
A: Option b is the answer
Q: Describe at least 3 needed internal control improvements.
A: Internal Control: It is a process of assuring the effectiveness and efficiency of the objectives…
Q: OLTP VERSUS OLAP SERVERS For each of the following processes, state whether OLTP or OLAP is…
A: Meaning OLTP & OLAP OLAP means Online Analytical Processsing and OLTP means Online Transaction…
Q: Demonstrate, using practical example how to prepare accounts from the Sales day book and Sales…
A: The sales day book is a manually-maintained ledger in which is recorded the key detailed information…
Q: The functions of and documents generated by which of the below departments determine when a…
A: Lets understand the basics. In organization, there are various department which are inter connected…
Q: Gaurav Mirchandaniis is the warehouse manager for a large office supply wholesaler. Mirchandaniis…
A: Inventory control is the procedure followed to maintain appropriate level of inventory and…
Q: Prepare in good form level zero data flow diagram that articulates with links to context diagram in…
A:
Q: defective
A: Weaknesses in the internal controls relating to the cash receipts procedure are listed as follows:…
Q: 1. What would a credit manager do if a sales order received caused a customer to exceed its credit…
A: The credit manager should disapprove the sales order as it will increase the collection period…
Q: XYZ pharmaceutical company has the following situation involving the processing of purchases…
A: Context diagram: - The Context diagram shows the system under consideration as a single high-level…
Q: The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse…
A: The following are some of the system's potential internal control risks: The inventory is directly…
Q: Choose only one answer as well as state their reasons/rationale for the answer chosen. 10) An…
A: Record count is the count of the total number of records of a batch. here there will be a count of…
Q: purchases and disbursements cycle usually begins when a. a user department request for acquisition…
A: Solution: The purchase and disbursement cycle is the cycle in which the purchase needs of a business…
Q: Which statement about Revenue Cycle is correct?
A: The revenue cycle begins with providing a product or service and ends when the invoice is paid in…
Q: Read the following statements carefully: Recalculate the allowance of accounts receivables.…
A: Type of Audit Procedures It is preliminary assessment an auditor is required to identify and…
Q: The sales department clerk receives hard-copy customer orders and manually prepares a six-part…
A: Internal control is an important part of every organization. It helps in maintaining the efficiency…
Q: Miss Anglea recently joined A2A Limited as an accounting clerk. As a part of financial reporting…
A: Internal controls are the rules, procedures, and methods implemented in the organization to ensure…
Q: In a good internal control system, which of the following sets of documents is required for proper…
A: Solution: In a good internal control system, for approval of payment we should do 3 way matching…
Q: A bill of lading, an invoice, a credit note, a remittance advise, and a monthly statement to clients…
A: Bill of Lading: The contract between seller and carrier for receipt and shipping of goods is…
Q: d. The sales department approves sales credit memos as the result of product returns and forwards…
A: The sales department of the company is responsible for recording the sales made by the company…
Q: As orders are received from customers, a personnel in the sales department prepares a sales order…
A: What area in the transaction cycle is deemed a control weakness instead of strength? a. The approval…
Q: The following describes the purchases and cash disbursements procedures for a lawn and garden supply…
A: The process flowchart is given as follows:-
Q: The bill of lading is prepared by the a. sales clerk. b. warehouse clerk. c. shipping clerk. d.…
A: Bill of Lading: A contract occurs between two parties which contain some important details such…
Q: What are the risks that are caused by the following combination of tasks? - The warehouse clerk who…
A: Solution- Warehouse clerk: Warehouse clerk has custodial responsibility as well as record keeping…
Q: An auditors would vouch copies of sales invoices to shipping documents in order to determine that:…
A: The auditing is a process to analyze the financial statements of the business.
Q: Following describes the credit sales procedures for clothing wholesaler that sells name-brand…
A: It means all the policies and procedures (internal controls) adopted by the management of the…
Q: You are working for a company and process a credit memo. This indicates that: merchandise was…
A: A credit memo is issued by a seller to the buyer indicating that amount due from the buyer has been…
Q: The purchases and disbursements cycle usually begins when Group of answer choices A user department…
A: A disbursement seems to be the transfer of funds from one account to another, whether for a purchase…
Q: Feinman Computers sells desktop computer systems that it manufactures from parts and software that…
A: REA Model: REA model establishes the relation between resource, event and agents. REA model serves…
Q: What is the reason for ensuring that every copy of a vendor's invoice has a receiving report? O To…
A: Audit is the process of checking and examining books of account of the business, so that it can be…
Q: Gaurav Mirchandaniis is the warehouse manager for a large office supply wholesaler. Mirchandaniis…
A: Control in the warehouse is very important for the proper execution of work, prevention of fraud and…
Q: You are working as an Accounts Receivable Officer in Super Mart Store. Your Store manager asked you…
A: Data flow Diagram of the transaction as below…
Q: Sales executives will negotiate and confirm the selling price and credit term with the customers…
A: Internal control is implemented by the management so as to ensure that the operations are running…
Q: Identify which department has stewardship over the following journals, ledgers, and files. a.…
A:
Q: Precision Industries, Inc., is a manufacturer of electronic components. When a purchase order is…
A:
Q: Upon reciept of requisition, the stores manager initiates a three part purchase order. To copies go…
A: Given: Which of the given statements properly describe the over purchasing internal cost. The…
Q: Describe the data flow in the buying process that begins when the purchasing organization sends a…
A: The Answer:
Q: Describe the flow of data in the purchasing process that is initiated when the purchasing…
A: A data flow diagram is a flow of data that analyzes the beginning criteria and end results of a…
Q: When aninventory itemfalls to the recorder point, a purchase requisition is automatically generated…
A: Develop system flow chart of expenditure cycle: The existing system performs the functions in…
As orders are received from customers, a personnel in the sales department prepares a sales order and sends a copy to the credit department for checking the viability of the customer's credit. A copy of the sales order is then sent to the shipping department for the preparation of the goods for delivery, the delivery receipt and the sales invoice which is then sent to the customer. A copy of the sales order, delivery receipt and the sales invoice is then sent to the accounting department for recording. What area in the transaction cycle is deemed a control weakness instead of a strength?
a. The approval of the customer credit.
b. The preparation of the delivery receipt.
c. The preparation of the sales invoice.
d. None can be deemed as a weakness.
Step by step
Solved in 2 steps
- Choose the one correct answer. As orders are received from customers, a personnel in the sales department prepares a sales order and sends a copy to the credit department for checking the viability of the customer's credit. A copy of the sales order is then sent to the shipping department for the preparation of the goods for delivery, the delivery receipt and the sales invoice which is then sent to the customer. A copy of the sales order, delivery receipt and the sales invoice is then sent to the accounting department for recording. What area in the transaction cycle is deemed a control weakness instead of a strength?a. The approval of the customer credit.b. The preparation of the delivery receipt.c. The preparation of the sales invoice.d. None can be deemed as a weakness.Sales executives will negotiate and confirm the selling price and credit term with the customers directly. Once the sales have been confirmed in writing or by telephone, the respective sales executive will direct it to the sales clerk who is available at the point of sales for the creation of two sets of sales order and sales invoice simultaneously. A copy of sales order and sales invoice will be forwarded to administration department for recording purposes. Another set of sales documents will be forwarded to warehouse supervisor for dispatch of goods. Once the goods have been packed, the warehouse assistant will instruct the driver to deliver the goods, together with the invoice to the respective customer. Credit control assistants, Ms. Chan and Ms. Tan in charge of the collection of debts from the customers. They will chase for payments as and when required by directors, James or Tony. Money received from the customers can be cash, cheque or direct debit. Money received in cash or…When Legacy Co. receives telephone and fax orders, the billing department prepares an invoice. The invoice is mailed immediately. A copy of the invoice serves as a shipping notice. The shipping department removes inventory from the warehouse and prepares the shipment. When the order is complete, the goods are shipped. The clerk checks the customer’s credit before recording the sale in the general journal and the account receivable subsidiary ledger. The receptionist opens the mail and lists all payments. The receptionist also handles all customer complaints and prepares sales return forms for defective merchandise. The cashier records all cash receipts in the general journal and makes the appropriate entry in the accounts receivable subsidiary ledger. The cashier prepares the daily bank deposit. Describe at least four internal control weaknesses at Legacy Co.
- Which statement about Revenue Cycle is correct? The customer and accounts payable department gets copies of the invoice.The sales order department prepares the invoice.The billing department uses the sales order and shipping documents to create the invoice.The accounts receivable department uses the sales order to update the accounts receivable subsidiary ledgerThe sales department clerk receives customer orders from the customers and prepares a three-part sales order. The Three copies are sent to the credit department for approval, where the clerk reviews the Customer Credit Records. After Approval, the credit department clerk returns one copy of the sales order to the sales department, where it is reviewed and filed. The remaining two copies are sent to the warehouse. The warehouse clerk picks the goods from the shelves and sends them along with one copy of the sales order to the shipping department. The third copy of the sales order is filed in the warehouse. Upon receipt of the goods, the shipping clerk prepares a shipping notice and sends the goods and one copy of the sales order to the customer. The clerk then sends the shipping notice to the billing department. Upon receipt of the shipping notice, the billing clerk updates the customer's account receivable and files the shipping notice in the department.The following procedures are used by Complete Wholesale Incorporated.a. All sales are made on account, with each sale being indicated on a sequentially numberedsales invoice.b. Customer payments are received in the mail by the office receptionist, who sends the checksto a cashier for deposit and the remittance advices to the accounting department for recordingagainst the customer’s account balance.c. The office receptionist is assigned the job of handling all customer complaints.d. When a customer has a legitimate complaint about goods sold to the customer on account, thereceptionist will phone the accounting department to request that the customer’s account becredited for the sales allowance.e. The company’s inventory is stored in a locked warehouse that is monitored by surveillancecameras.f. Payments to the company’s suppliers are made only after the supplier’s invoice is received andcompared to the receiving report.Required:1. Indicate whether each procedure represents a strength or…
- Precision Industries, Inc., is a manufacturer of electronic components. When a purchase order is received from a customer, a sales clerk prepares a serially numbered sales order and sends copies to the shipping and accounting departments. When the merchandise is shipped to the customer, the shipping department prepares a serially numbered shipping advice and sends a copy to the accounting department. Upon receipt of the appropriate documents, the accounting department records the sale in the accounting records. All shipments are FOB shipping point. How can the auditors determine whether Precision Industries, Inc., has made a proper year-end cutoff of sales transactions?Precision Industries, Inc., is a manufacturer of electronic components. When a purchase order is received from a customer, a sales clerk prepares a serially numbered sales order and sends copies to the shipping and accounting departments. When the merchandise is shipped to the customer, the shipping department prepares a serially numbered shipping advice and sends a copy to the accounting department. Upon receipt of the appropriate documents, the accounting department records the sale in the accounting records. All shipments are FOB shipping point. Assume that all shipments for the first five days of the following year were recorded as occurring in the current year. If not corrected, what effect will this cutoff error have upon the financial statements for the current year?The sales department clerk receives hard-copy customer orders and manually prepares a six-part hardcopy sales order. Copies of the sales order are distributed to various departments as follows: Copies 1, 2, and 3 go to the shipping department, and Copies 4, 5, and 6 are sent to the billing department where they are temporarily filed by the billing clerk. Upon receipt of the sales order copies, the shipping clerk picks the goods from the warehouse shelves and ships them to the customer. The clerk sends Copy 1 of the sales order along with the goods to the customer. Copy 2 is sent to the billing department, and Copy 3 is filed in the shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls the other copies from the temporary file and completes the documents by adding prices, taxes, and freight charges. Then, using the department PC, the billing clerk records the sale in the digital Sales Journal, sends Copy 4 (customer bill) to the customer, and sends…
- The following describes the purchases and cash disbursements procedures for a lawn and garden supply wholesaler that uses central computer system terminals with in departments. The inventory control clerk visually reviews inventory levels from his computer terminal to identify items that need to be ordered. He then prints and sends a hard copy purchase requisition for the needed items to the purchasing agent. Based on the requisi- tion, the purchasing agent selects a vendor and adds a digital record to the purchase order file from terminal in the purchasing department. The clerk then prints a hard copy of the purchase order and mails it to the vendor. Finally, the purchasing agent destroys the purchase requisition, which it is no longer niceded since the relevant details are on the PO. When the materials arrive at the receiving department a receiving clerk prints a copy of the purchase order from his terminal and reconciles to the packing slip. The clerk then manually creates wo-part…The following describes the revenue cycle procedures for a hypothetical company.The sales department clerk receives hard-copy customer orders and manually prepares a six-part hardcopy sales order. Copies of the sales order are distributed to various departments as follows: Copies 1, 2, and 3 go to the shipping department, and Copies 4, 5, and 6 are sent to the billing department where they are temporarily filed by the billing clerk.Upon receipt of the sales order copies, the shipping clerk picks the goods from the warehouse shelves and ships them to the customer. The clerk sends Copy 1 of the sales order along with the goods to the customer. Copy 2 is sent to the billing department, and Copy 3 is filed in the shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls the other copies from the temporary file and completes the documents by adding prices, taxes, and freight charges. Then, using the department PC, the billing clerk records the sale in the…The sales department clerk receives hard-copy customer orders and manually prepares a six-part hardcopy sales order. Copies of the sales order are distributed to various departments as follows: Copies 1, 2, and 3 go to the shipping department, and Copies 4, 5, and 6 are sent to the billing department where they are temporarily filed by the billing clerk. Upon receipt of the sales order copies, the shipping clerk picks the goods from the warehouse shelves and ships them to the customer. The clerk sends Copy 1 of the sales order along with the goods to the customer. Copy 2 is sent to the billing department, and Copy 3 is filed in the shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls the other copies from the temporary file and completes the documents by adding prices, taxes, and freight charges. Then, using the department PC, the billing clerk records the sale in the digital Sales Journal, sends Copy 4 (customer bill) to the customer, and sends…