Identifying the internal control weakness

Assignment Help Financial Accounting
Reference no: EM13492037

Advanced Radio repairs make all sales on account. Cash receipts arrive by mail. James opens the envelopes and separates the cheques from the accompanying remittance advices. James forwards cheques to another employee, who makes the daily bank deposit but has no access to the accounting records. James sends the remittance advices, which show the cash received, to the accounting department for entry into the accounts. James' other duty is to grant sales allowances to customers ( a sales allowance decreases the amount receivable). When he receives a customer's cheque for less than the full amount of the invoice, he records the sales allowance and forwards the document to the accounting department.

Required

You are the new Financial Controller of Advanced Radio repairs. Write a memo to the company Chairperson identifying the internal Control weakness in this situation. State the steps to be taken to correct the weakness.

Reference no: EM13492037

Questions Cloud

Determine the initial kinetic energy of the system : A 31.0 kg child runs with a speed of 3.00 m/s tangential to the rim of a stationary merry-go-round. Calculate the initial kinetic energy of the system
Effect on the financial performance of the organisation : Not having an accounting background, the owner Joe Logs, does not understand the concept of depreciation and is under the impression that depreciation is a process of creating a cash fund to replace an asset.
Explain how many days are required for a sample decay : For the decay of 226 Ac by all processes combined, the first-order rate constant is k = 0.556 d^- 1. How many days are required for 76.0% of a sample of 226 Ac to decay? equation to use is ln(n/no)=-kt
What is the waters temperature after a half hour : At rest a person has a metabolic rate of 4.2 x 10^5 J/hr. The person is submerged neck-deep into a tub containing 1.0 x 10^3 kg water at 27.00 degrees Celcius. what is the water's temperature after a half hour
Identifying the internal control weakness : Write a memo to the company Chairperson identifying the internal Control weakness in this situation. State the steps to be taken to correct the weakness.
What is the stores degree of operating leverage : How many pairs of stockings must be sold to break even? What does this represent in total dollar sales?
Calculate the free cash flow for cellular access for : Keeping the other assumptions that underlie Table 7.1 the same, recalculate unlevered net income (that is, reproduce Table 7.1 under the new assumptions, and note that we are ignoring cannibalization and lost rent).
Explain preparation of benzoic acid from benzonitrile : During an experiment: preparation of benzoic acid from benzonitrile what is the percent yield of benzoic acid: volume of benzonitirle: 2.0 mL and mass of benzoic acid obtained: 1.10 g
Short report on your findings to a prospective purchaser : Undertake an analysis of the company and prepare a short report on your findings to a prospective purchaser.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is amount of total assets

You know that net earnings are $50,000, opening retained earnings $25,000, dividends $20,000, common shares $2,000, current assets $26,000 and total liabilities are $33,000. What is amount of total assets?

  Rquirement 4based on the current economic pressures the

requirement 4based on the current economic pressures the company has decided to eliminate the part time janitor and

  Labor-abundant country, produces only wheat and cloth

The land to labor ratio in the production of cloth is higher than that in the production of wheat. The opportunity cost of producing cloth is higher than the opportunity cost of producing wheat in country A. .

  What are the similarities and differences

Compare the payment of cash dividends, stock dividends, and purchase of treasury stock from existing shareholders. What are the similarities and differences?

  What is the forecasted addition to retained earnings

What is the forecasted addition to retained earnings for 2010? A budget is a formal written statement of management's strategies for the future expressed in financial terms. Evaluate the forecasted inventory balance have to be to achieve a Turn..

  Illustrate weighted-average contribution margin ratio

The sales mix (as a percent of total dollar sales) of its three product lines is: birthday candles 30%, standard tapered candles 50%, and large scented candles 20%. Illustrate w hat is the weighted-average contribution margin ratio?

  Assess the ethical considerations for information privacy

Assess the ethical considerations for information privacy

  Prepare the statement of cash flows for 2007

Classify each of the following transactions as an operating activity, an investing activity or a financing activity cash flow, or a non cash transaction - Indicate also its effect on the Income statement (increase or decrease the profit).

  Compute the minimum transfer price as well as indicate

Compute the minimum transfer price as well as indicate whether the internal transfer must occur for each of the following- Show your computations to receive credit for your answers

  Question which one is not a accurate practice under the

question which one is not a accurate practice under the gaap?a. arb 43 noted that there are two separate types of

  Compute the amounts of dividends in total and per share

Suppose that the preferred stock is noncumulative, and the total amount of dividends is $29,000 and compute the amounts of dividends, in total and per share, that would be payable to each class of stockholders.

  Question q1 willkom corporation bought 100 percent of szabo

question q1. willkom corporation bought 100 percent of szabo inc. on 1st january 2011. on that date willkoms equipment

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd