1. List what you believe should have been the three to five key internal control objectives of Goodner’s Huntington sales office. The Goodner’s Huntington sales office should have implemented the following internal control objectives: 1. The reliability of financial reporting‚ which relates to the timely and accurate recording of transaction‚ and it makes sure that financial reports are reliable and free of material misstatement. In addition‚ it also deals with the physical security
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Case 3.5 - Goodner Brothers‚ Inc. 1. I believe should have been the three to five key internal control objectives of Goodner’s Huntington sales office are to ensure adherence to management policies and directives in order to achieve efficiently and economically the organisation’s objectives; to safeguard assets; to secure the relevance‚ reliability and integrity of information‚ so ensuring as far as possible the completeness and accuracy of records; and to ensure compliance with statutory requirements
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Objectives Internal control is a process that designed to help the organization to accomplish specific objectives or targets by ensuring the reliability of the financial reporting and operated effectively and efficiently. As an internal auditor of Goodner Brothers Inc‚ I strongly believe that an entity should have enough personnel to maintain a proper segregation of duties to prevent misstatement and fraud. In this entity‚ the sales representatives are allowed to access‚ review and even update the details
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DATE: March 6‚ 2013 SUBJECT: Goodner Brothers‚ Inc. The Goodner Brothers‚ Inc. audit case is based off the story of two men who have been friends since their childhood: Woody Robinson and Al Hunt. Now as adults‚ Mr. Hunt works for an auto supply store while Mr. Robinson works for Goodner Brothers‚ Inc.‚ a tire wholesaler in Huntington‚ West Virginia. In the Goodner case‚ internal auditors were conducting their annual inventory counts of Goodner Brothers‚ Inc. and determined that their numbers
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1.) The Goodner’s Huntington sales office should have implemented the three following objectives: 1. Financial Reporting Objective- This makes sure that the financial report is reliable and free of fraudulent reporting and also deals with the safeguarding of assets from unauthorized use. 2. Operations Objective- This covers business strategy and tactics and the effectiveness and efficiency of operations. 3. Compliance Objective- This makes sure that the company is in compliance
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have been the three to five key internal control objectives of Goodner’s Huntington sales office. The Goodner Brothers‚ Inc. case is an example of when company profits derived from management’s culture facilitated weak internal controls which allowed employees to commit serious fraud. "Goodner’s’ executives preached one dominant theme to their sales staff "volume‚ volume‚ volume." The Goodner Company in an effort to undercut its cut back on operating expenses primarily related to internal controls
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Q1. Define SWOT analysis with appropriate examples using external resources (200 words) SWOT Analysis‚ technique credited to Albert Humphrey‚ is strategic planning method used to evaluate Strengths‚ Weaknesses‚ Opportunities and Threats involved in business ventures. 1 It involves 1) Specifying objective 2) Identifying internal and external factors favorable and unfavorable to achieve objective 1 Example - Healthcare Software Company selling high value products 2 Strengths : Internal
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KNAPP CASE 3.5 : GOODNER BROTHERS‚ INC. 1. Internal control objectives Goodner’s Huntington sales office should have implemented: a. Separation of duties: Sales reps like Woody were given unrestricted access to the accounting system where they could directly enter transactions. Sales reps also had direct access to inventory storage areas‚ and often delivered customer orders. b. Physical controls: Pad locks served as the security of Goodner’s inventory. There should have been stronger
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Case 3.5 Goodner Bothers Inc. 1. Internal controls should have included these controls; -Adequate security for the inventory -Better periodic verification of inventory -Segregated duties when it comes to inventory -Proper supervision for sales transactions and the procedures that they employ to record them -Proper authorization by management for inventory transactions 2. Internal control weaknesses - Lack of segregation of duties involving sales and recording -Security controls over
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1. Goodner Brothers set ambitious sales goals. In order to achieve these goals‚ they were known to undercut their competitor’s prices. In the text‚ it is pointed out that “To compensate for low gross profit margin‚ Goner scrimped on operating expenses‚ including expenditures on internal control measures.” Goodner Brothers should have not saved on internal control measures so they could have caught Woody stealing their inventory. Goodner Brother’s should have had more employees to have an appropriate
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