Wk 5 Individual Pt.1 - Controls: Weakness: Violation:...

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BE5-1 A. Cost of good sold- $46400/Operating Expenses-$17800 B. Gross profit-$38000/Operating Expense-$8500 C. Sales-$171500/Net Income-$60100 BE5-5 Revenues Sales on credit $280,000 Cash sales $100,000 Sales discounts $13,000 Sales returns and allowances $21,000 Total Revenues $414,000 BE5-10 Cost of goods sold Purchases $400,000 Purchase Returns and Allowances $11,000 Purchase Discounts $8,000 $19,000 Net purchases $381,000 Freight-In $16,000 Cost of goods purchased E8-1 Indentifying the controls: Controls: Clerks Establishment of Responsibilities Ovens Physical, Mechanical, and Electronic Employees Segregation of Duties Customer Other Controls E8-2 Indentifying the controls:
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Unformatted text preview: Controls: Weakness: Violation: Attach Case Physical, Mechanical, and Electronic Excess cash stored in the stock room until the deposit is made. The Attach is unlocked Receipts Accountant/Cashier Documentation Procedures Multiples receipts and registers for one draw Multiple clerks working out of one register. Segregation of duties Multiple cashiers The employees are not bonded $397,000 Suggestion: Make a few daily deposits More cash draws so that each employee can work on there own register. Add a independent internal verification employee...
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Wk 5 Individual Pt.1 - Controls: Weakness: Violation:...

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