Indicate internal control principle that csc violated

Assignment Help Accounting Basics

Reference no: EM131358473

Assignment

Colorado Springs Company (CSC) is a wholesaler with fiscal year ended December 31 of previous year. Since it is publicly-traded, it undergoes external audit. The most recent audit was completed in February of this year. As part of the audit of the financial statements, the auditors tested the effectiveness of management's assessment of internal control over financial reporting. The auditor found out that existing internal controls were inadequate. Specifically, CSC's accounting system for sales, cash receipts, accounts receivables, and accounts payable had material weakness. The audit revealed that there were:

• Poor accounting system of recording keeping
• Late deposits of cash receipts
• Excessive aged and high accounts receivable balances
• Disregard for early payments for discounts on invoices
• Late payments of accounts payable (sometimes due to lack of cash)
• Lax appropriate segregation of duties
• Relaxed rules on accounting principles' application
• Unqualified supervisor and management
• Inadequate control on supervisor and management overrides
• Lax oversight by external board of directors

a. For each finding above, indicate internal control principle that CSC violated.

b. For each finding above, provide an appropriate recommendation for CSC to correct the weakness.

Your response should include two to three pages of written text in addition to any calculations and solutions you offer to support your thinking. APA Formatting.

Reference no: EM131358473

Questions Cloud

Did fell violate the aicpa code of professional conduct : Did Fell violate the AICPA Code of Professional Conduct? Explain fully. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome.

What would be before-tax component cost of debt : KatyDid Clothes has a $110 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 8 percent, paid semiannually. What would be Katydid’s before-tax component cost of debt?

Futures contracts and forwards contracts : 1. What is meant by the Time Value of Money? What considerations are made when calculating TVM? 2. Define futures contracts and forwards contracts? Explain in detail.

Does disneyland have the right to dictate a dress code : Does Disneyland have the right to dictate a dress code? Or are they practicing discrimination? What is your opinion? Do we respect these choices? Or do we try to stop some practices when people from different cultures come to the US?

Indicate internal control principle that csc violated : For each finding above, indicate internal control principle that CSC violated. For each finding above, provide an appropriate recommendation for CSC to correct the weakness.

Should the family and medical leave act : Explain the reason for selecting topic one (1), Should the Family and Medical Leave Act be changed?identify the audience, and provide a preliminary thesis statement.

Whats interesting or helpful about this view? : When looking for information about a particular issue, how often do you try to resist biases toward your own point of view? This assignment asks you to engage in this aspect of critical thinking by playing the "Believing Game." The Believing Game ..

Evaluate both the advocates position and critics position : Evaluate both the advocates' position and the critics' position - Determine which position you support and defend your position.

Estimate the strains-to-failure using the data equation : Consider a quasi-isotropic laminate [0/90/ ± 45]S, 8 mm thick, made of carbon-epoxy AS4-3501-6. Use the truncated-maximum-strain failure criterion without matrix cutoff.

User Account

All Pages