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1. Question (250 words) Albert Mona has worked at Crimson Electricals for more than 8 years. He is a very diligent employee who never calls in sick and staggers his vacation days throughout the year...

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1. Question (250 words)
Albert Mona has worked at Crimson Electricals for more than 8 years. He is a very diligent employee who never calls in sick and staggers his vacation days throughout the year so that no other staff member has taken on his tasks for more than one day. As a small retailer, Crimson employs only three people other than the owner. The owner, with his in-depth knowledge of the trade, focuses exclusively on serving the customers. One employee handles all receiving, stocking and shipping of merchandise and another employee handles the purchasing, payroll, general ledger, inventory and accounts payable function.
Albert handles all receipts from cash sales and prepares the daily deposits for the business. In addition, he opens the mails and deposits all cheques. Albert also keeps the accounts receivable records and bills the customers who purchase on credit.
Required:
a) Identify the control weaknesses at Crimson Electricals.
) Assume that no additional employee can be hired, make some recommendations to remedy the identified weaknesses.
2.Question (250 words)
The following is the description of the purchases system of a wholesaler:
At the beginning of each day, the purchasing clerk checks the inventory subsidiary ledger on personal computer terminal. When the quantity of an item is considered as too low, the clerk selects a supplier from the valid suppler file and prepare a digital purchase order. Two hard copies of the order are printed: One copy is sent to the supplier and the other is filed in the purchasing department. The digital purchase order record is added to the purchase order file.
The receiving clerk inspects the goods a
ived at the receiving department and reconciles the items against the information in the digital purchase order and the packing slip. The clerk then prepares two hard copies of the receiving report manually. One copy of the report is sent to the accounts payable department. The other copy of receiving report accompanies the goods to the warehouse where the warehouse clerk shelves the goods, updates the inventory subsidiary ledger from the warehouse terminal and files the report in the department.
The accounts payable clerk files the receiving report upon receipt. When the supplier’s invoice a
ives, the clerk pulls the report from the file, print a hard copy of digital purchase order, and reconciles the three documents. After the check, the accounts payable clerk updates the accounts payable subsidiary ledger, the accounts payable control account and the inventory control account. The clerk then sends the invoice, receiving report and a copy of the purchase order to the cash disbursement department.
Discuss the internal control weaknesses in this purchases system and the associated risks. 3
3.Question (250 words)
The following is the description of the payroll system of a manufacturing company:
Employees of the company use a time clock in an unsupervised area to record their time on the job. The site supervisor tries to monitor the recording process. However, due to other duties, the supervisor is often distracted. The site supervisor collects the time cards from employees every Friday. The supervisor then reviews and approves the time cards and send them to payroll clerk.
The payroll clerk uses a stand-alone workstation to record the employees’ earnings in the employee records and print two hard copies of payroll register. One copy of the payroll register is sent to the accounting department and the other copy is filed with the time cards in the payroll department.
The accounting clerk receives the payroll register, reviews it for accuracy, and use the department computer to record the transaction by posting to salary expenses, cash and various withholding accounts at general ledger and subsidiary ledgers. The clerks then prints the hard copy of pay cheques, which are written on the general cash account.
The accounting clerk signs the pay cheques and sends them to the site supervisor who distribute them to the employees. The clerk then files the payroll register in the accounting department.
Discuss the uncontrolled risks associated with the company’s payroll system.
4 question
The following contains the steps of the financial reporting process.
Make adjusting entries
Prepare the financial statements
Post to the subsidiary ledger
Prepare the adjusted trial balance
Journalise and post closing entries
Journalise and post adjusting entries
Record transactions in special journals
Capture the transactions
Post to the general ledge
Prepare the unadjusted trial balance Required:
List the steps in the proper order.
Answered Same Day Jun 25, 2021 ACC200 Charles Sturt University

Solution

Harshit answered on Jun 25 2021
144 Votes
ANSWER 1
a) In the given case, Albert Mona is the employee of Crimson Electricals for 8 years. He handles all receipts from the cash receipts and prepares the daily deposits of the business. In addition, he opens the mail and deposits all the cheque. He is also responsible for keeping the accounts receivables and bills of customers who purchase on credit. Therefore, there are certain control weaknesses at Crimson Electricals. They are as follows:
· There is no clear segregation of duties at Crimson Electricals. This can be seen by the fact that Albert is collecting cash and he is the one who is depositing the same in the bank. It can lead to manipulation by the person.
· There is no management or owner’s approval for collecting and depositing cash or permission for such activities.
· Reconciliation of stock, sales and purchases are not prepared by the management on regular basis. This can lead to misplacement of inventory.
· Accounting System Access Control
· Proper and standard financial documents
· Check on trial balance on regular basis
) Without hiring additional staffs in Crimson Electricals, the steps that can be taken by the management to remove the above stated weaknesses are:
· There should be proper segregation of duties, i.e. if one is responsible for collecting cash; the deposit of the same should be done by another person.
· The transactions and processes should be reviewed and supervised by the owne
· Albert should...
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