As a new employee at Canyon rental, an outdoor
outfitters and supply shop, your boss has asked you to look at the internal
control system within the store. He is seeking a loan for expansion and must have
his books audited. The auditor asked about his control procedures and
documentation. He has no idea what the auditor is talking about. Your boss has
asked you to do what you need to understand the system and has asked for a memo
with your observations and recommendations by the end of the week. Through
interviews and observation you notice the following:
Purchase orders, and
sales invoices are not pre-numbered due to the higher cost of printing the
To save time the sales
clerk enters the sales at the end of the day into the accounting records,
prepares the deposit and delivers it to the bank.
The sales clerk a
trusted and long-term employee grants sales returns at her discretion.
The purchasing manager
both orders merchandise and approves the payment for the order.
Betty Gamble, the
bookkeeper has not taken a vacation in three years.
Checks are brought to
the owner twice a week for signing. He is overwhelmed by all of the paperwork
and has asked for the checks only on which he stamps his signature.
In your memo, give a summary of the elements
of an effective internal control system. Comment on each of your observations
and if there is a weakness provide a solution. Your memo should be 2-3 pages. Set timeline for 6 hours – Need ASAP! Thank you
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more