Week 3 Assignment from the Reading
Week 3 Assignment from the Reading
Jessica Pipito
ACC/340
February 25, 2015
Prof. David De La Calzada
Week 3 Assignment from the Reading
Case Analysis 8-17
Weakness
Recommended Improvements
Same Person collects daily fees and deposits the cash and files the wavier forms
There should be one person (A) that has visitor fill out the forms and files them, also keeping a tally of the number each day. And a second person (B) collects the cash and deposits it into the lock box.
The accountant deposits the cash at the bank and makes the journal entry
The manager at the end of the night could deposit the cash, and the next morning the accountant could make the journal entry.
No one checks the number of wavier forms filled out against the amount of cash deposited
The accountant should also check the amount of waiver forms filled out against the amount of cash deposited to make sure amount deposited is equal to the number of visitors paying a fee
Problem 9-15 Identify one or more control procedures (either general or application controls, or both) that would guard against each of the following errors or problems.
a.) Leslie Thomas, a secretary at the university, indicated that she had worked 40 hours on her regular time card. The university paid her for 400 hours worked that week.
Payroll clerk reviews all inputs before posting, and then the accounting supervisor reviews all checks for reasonableness before sending them out.
b.) The aging analysis indicated that the Grab and Run Electronics Company account was so far in arrears that the credit manager decided to cut off any further credit sales to the company until it cleared up its account. Yet, the following week, the manager noted that three new sales had been made to that company—all on credit. Computer control to disallow issuing new sales on credit to customers should be programmed into the system.
c.) The Small Company employed Mr. Fineus Eyeshade to perform all its accounts receivable data
Jessica Pipito
ACC/340
February 25, 2015
Prof. David De La Calzada
Week 3 Assignment from the Reading
Case Analysis 8-17
Weakness
Recommended Improvements
Same Person collects daily fees and deposits the cash and files the wavier forms
There should be one person (A) that has visitor fill out the forms and files them, also keeping a tally of the number each day. And a second person (B) collects the cash and deposits it into the lock box.
The accountant deposits the cash at the bank and makes the journal entry
The manager at the end of the night could deposit the cash, and the next morning the accountant could make the journal entry.
No one checks the number of wavier forms filled out against the amount of cash deposited
The accountant should also check the amount of waiver forms filled out against the amount of cash deposited to make sure amount deposited is equal to the number of visitors paying a fee
Problem 9-15 Identify one or more control procedures (either general or application controls, or both) that would guard against each of the following errors or problems.
a.) Leslie Thomas, a secretary at the university, indicated that she had worked 40 hours on her regular time card. The university paid her for 400 hours worked that week.
Payroll clerk reviews all inputs before posting, and then the accounting supervisor reviews all checks for reasonableness before sending them out.
b.) The aging analysis indicated that the Grab and Run Electronics Company account was so far in arrears that the credit manager decided to cut off any further credit sales to the company until it cleared up its account. Yet, the following week, the manager noted that three new sales had been made to that company—all on credit. Computer control to disallow issuing new sales on credit to customers should be programmed into the system.
c.) The Small Company employed Mr. Fineus Eyeshade to perform all its accounts receivable data