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Essay on Week 3 Assignment from the Reading

Decent Essays

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 …show more content…

Employees are required to take vacation and they should be cross-trained to cover each other’s jobs when they are out.
d.) The Blue Mountain Utility Company was having difficulty with its customer payments. The payment amounts were entered directly into a terminal, and the transaction file thus created was used to update the customer master file. Among the problems encountered with this system were the application of customer payments to the wrong accounts and the creation of multiple customer master file records for the same account.
They should be matching the invoice number and account numbers; this review should catch the error. Another control is the customers reviewing their statements to make sure that they are not being over charged, ect.
e.) The Landsford brothers had lived in Center County all their lives. Ben worked for the local mill in the accounts payable department, and Tom owned the local hardware store. The sheriff couldn’t believe that the brothers had created several dummy companies that sold fictitious merchandise to the mill. Ben had the mill pay for this merchandise in its usual fashion, and he wrote off the missing goods as ‘‘damaged inventory.’’
Access control to create new vendors, and vendor approval procedures is a good control.
Problem 9-16 Identify one or more control procedures (either general or application controls, or both)

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