ACCY 304: Homework for Session 10 due by 8 AM on 9/28 (Th)Managers are responsible for properly...

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ACCY 304: Homework for Session 10 due by 8 AM on 9/28 (Th)Managers are responsible for properly safeguarding the assets and correctly reporting the financial information. However, reading the assigned case allows us to identify diverse issues in The University Store indicating that many textbooks in the store would have become quite obsolescent (i.e., textbooks are worth much lower in reality than recorded in the balance sheet), and that the financial information may not well reflect the inventory in existence (e.g., actual inventory is much less than recorded in the balance sheet).Identify five specific causes/forces for the store’s problems described in the case. For each cause you identify, categorize whether it stems from outside environment changes (e.g., market-wide, industry-wide, or university-wide changes) or whether it is more related to internal store-specific problems. Also, list a component of the COSO Framework most closely related to the cause.  	 		 			Causes/Forces for the issue in the Store: 			Outside environment changes; OR Internal store-specific problems? 			A component of the COSO Framework most closely related 		 	 
	
Document Preview: ACCY 304:  Homework for Session 10 due by 8 AM on 9/28 (Th)Managers are responsible for properly safeguarding the assets and correctly reporting the financial information.  However, reading the assigned case allows us to identify diverse issues in The University Store indicating that many textbooks in the store would have become quite obsolescent (i.e., textbooks are worth much lower in reality than recorded in the balance sheet), and that the financial information may not well reflect the inventory in existence (e.g., actual inventory is much less than recorded in the balance sheet).  Identify five specific causes/forces for the store’s problems described in the case. For each cause you identify, categorize whether it stems from outside environment changes (e.g., market-wide, industry-wide, or university-wide changes) or whether it is more related to internal store-specific problems. Also, list a component of the COSO Framework most closely related to the cause.Causes/Forces for the issue in the Store:Outside environment changes; OR Internal store-specific problems?A component of the COSO Framework most closely related(Note: If you want to, you can list more than five causes.)

David · Accepted Answer

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	Causes and Forces for the issue in the Store
	Outside Environment Change or Store Specific Problems
	Component of COSO Framework most costly related
	1
	Competence in Critical Positions 
Returns manager position is one of key position as returning unwanted books within return window is very crucial. Not returning in time would lead to inventory becoming obsolete and consequent losses. When high turnover is expected in returns manager position, that position should have appropriate supervision and is to be kept within strong process controls, adequate training, apt policies and procedures documentation. This position also needed support of robust inventory system to track the return windows and get alert as to review the possible return of unsold books.  
	Store Specific Problem
	Control Environment :

ACCY 304: Homework for Session 10 due by 8 AM on 9/28 (Th) Managers are responsible for properly safeguarding the assets and correctly reporting the financial information. However, reading the...

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