Marsha’s Pet Store employs six employees. Their duties are to sell pets, replenish the stock, keep the pets’ cages clean, feed the pets, and maintain good records. Marsha pays a fixed hourly rate and a commission on sales of pets. Lately, Marsha has been finding that the records have not been well maintained and the stock has not been replenished. However, pet sales are good and the pets’ cages are clean. Is Marsha’s current reward structure motivating the employees to pay more attention to the pets than to their other duties? multiple choice True False
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Marsha’s Pet Store employs six employees. Their duties are to sell pets, replenish the stock, keep the pets’ cages clean, feed the pets, and maintain good records. Marsha pays a fixed hourly rate and a commission on sales of pets. Lately, Marsha has been finding that the records have not been well maintained and the stock has not been replenished. However, pet sales are good and the pets’ cages are clean. Is Marsha’s current reward structure motivating the employees to pay more attention to the pets than to their other duties?
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- For the past 11 years, Elaine Wright has been an employee of the Star-Bright Electrical Supply store. Elaine is a very diligent employee who rarely calls in sick and staggers her vacation days throughout the year so that no one else gets bogged down with her tasks for more than one day. Star-Bright is a small store that employs only four people other than the owner. The owner and one of the employees help customers with their electrical needs. One of the employees handles all receiving, stocking, and shipping of merchandise.Another employee handles the purchasing, payroll, general ledger, inventory, and AP functions. Elaine handles all of the point-of-sale cash receipts and prepares the daily deposits for the business. Furthermore, Elaine opens the mail and deposits all cash receipts (about 30 percent of the total daily cash receipts). Elaine also keeps the AR records and bills the customers who purchase on credit.Point out any control weaknesses you see in the scenario. List some…Mahal is the owner of Muning Meow Meow Day Care, a pet-sitting service. Pet owners bring their cats to Mahal's facility in Kamuning, Quezon City, where they are either given private accommodations or are put in a large pen with other cats. (Private accommodations are more expensive.) Mahal and her employees feed the cats twice a day; those cats in private accommodations are also given two exercise periods per day. Owners pay half the daily fee at the start of the day, and the other half when they pick up the dog at the end of the day; owners must also certify that their cats have had all required vaccinations. As Mahal's company is a day care service, no cats stay the night in her facility. Mahal accepts cash, checks, Gcash, Paymaya, and major credit cards in payment. Mahal is interested in developing a comprehensive internal control plan for Muning Meow Meow Day Care; she has approached you, as a consultant, for assistance. Which of the following group of concepts related to COSO…Rosie is a dentist. She is working at a Dental office which is owned by another dentist and her friend. Rosie goes to her friend’s clinic three times a week and sees the patients that are booked by the clinic. Sometimes, she refers patients to the clinic who were her patients at a different clinic and even establishes the fees charged to patients. Rosie also works for another clinic and is not required to work during established hours. Rosie is paid based on productivity, as she receives payments for seeing each patient at the clinic. Rosie wants to know if she is an employee or contractor at her friend’s clinic.
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- Linda Malloy is a CPA with a passion for animals and volunteers 15 hours a week at an animal shelter. While she was originally asked to provide pro bono auditing help, these days she only provides hands-on care for abandoned and rescued puppies. One Saturday the shelter's director tells Linda that the puppies seem very agitated, and adds, "It's almost like they know what dire financial straits we are in right now and they are worried about landing back on the streets again." Linda senses an opportunity, and calls a friend she thinks might be interested in purchasing the shelter. She tells her friend, "I bet you can get the place for well under market value, since the owner is really stressed and needs to sell quickly." Which of the following statements is true? Select one: As a CPA, Linda is not permitted to provide volunteer or pro bono services, so has made a per se violation of the AICPA Code of Professional Conduct. Regardless of the physical labor she is providing at the…A small air conditioning repair and parts supply company employ 25 workmen who perform services tasks and 3 office staff: One of the office staff, Harold Jones, has been with the company since it opened its doors. During that time, he has earned the trust of the owner and has proven to be a diligent employee who often works late, occasionally comes in on weekends for no additional pay, and hasn’t taken a substantial vacation in over 10 years. Instead, he staggers his vacation days throughout the year to avoid the need for a replacement and ensures that none of the other office staff is burdened with his work. Harold’s primary tasks include: • Responsible for POS cash and credit sales • Bills those customers who purchase on credit • Opens the mail and posts cash receipts to AR records, and • Prepares the daily cash deposits for the business. Another office worker, Mike Larkin, handles purchasing of inventory and supplies from vendors, stocking, shipping merchandise, updating…Sandy Copper needs to work late at the office, much later than the time that doggie day care closes for her rescue dog, Remy. So Sandy Copper uses the Mookie The Beagle Concierge app to schedule a pickup from doggie day care to take Remy home and pick up dog food, which Sandy hasn't had time to buy because of her demanding work schedule. So when Sandy is working late, she is pleased to have the Mookie The Beagle Concierge app to schedule the following pet care services. • Pet Care: Transport 1 hour (pickup at doggie day care) . Pet Care: Errand 1 hour (minimum) to obtain dog food • Pet Care: Medium Visit 4 hours Required: Complete the following to record the Invoice for services provided. 1. Update customer information in the Customers List. a. From the Navigation Bar, select Sales > Customers tab b. Select Sandy Copper > Edit c. Enter the following customer information. Display Name As: Email: Mobile: Billing Address Street: Billing Address City: Billing Address State: Billing Address…
- Sally works as a manager in the gardening section of her local Bunnings Store. Recently, Sally was approached by a customer asking questions about the store's range of built-in kitchens. Although she knew nothing about the products, Sally recommended the deluxe kitchen package which came with free installation. After completing the sale, Sally handed the customer her Bunnings business card (which identified her as a manager), explained that the customer should get his new kitchen professionally installed and to forward her the 3 party's invoice- which Bunnings would pay. A few weeks later, the customer is shocked to learn that Bunnings is refusing to pay his carpenter's $10,000 invoice and that Sally failed to mention that the offer was capped at $500. Required: a) With reference to Pacific Cariers v Paribas, what is the test for deciding if an agent had apparent authority? b) Analyse whether Sally had apparent authority to bind Bunnings Pty Ltd to this $10,000 contract. C) How would…Alexia Jones is a worker at a local 24-hour pharmacy. Alexia works the night shift and is the only worker. Because management is cost-conscious and business is slow at night, Alexia has been given the responsibility to do the accounting from the previous day. Alexia has two children, and her husband does not work. Alexia has strong pressure to provide well for her family. Is the pharmacy at risk for fraud? Why or why not?Your friend, Julia, owns a corner store in your neighborhood. She purchases fresh milk from a nearby farm and sells them in her store. Cost of the milk is $5 per case, and each case can be sold for $6 per case. Since the milk does not go through rigorous treatment, it should be sold within a week. Any milk that is not sold during the week can be sold back to the farm for $2 per case. Based on the historical, she identified the following probability distribution of the demand. Weekly Demand (cases) Probability 16 0.05 17 0.15 18 0.35 19 0.25 20 0.2 One of the reasons why people come to her store is the availability of fresh milk, and those customers typically make other purchases along with fresh milk. She believes there will be a loss of such sales if she is not able to have enough fresh milk in the store, and estimates this loss to be $2 per case. Julia needs some help to determine how many cases of fresh milk she needs to order for the coming…