case study 6

case study 6 - 4. Physical inventory counts varied from...

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Jennifer Solomon Acct 470 Case study 8-18 1. At four of the stores, bank deposit slips did not match cash receipts. a. Identify a risk that may have created the problem. b. Recommended an internal control to prevent the problem in the future. 2. One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks. a. Identify a risk that may have created the problem. b. Recommended an internal control to prevent the problem in the future. 3. In seven of the stores, that amount of petty cash on hand did not correspond to the amount in the petty cash account. a. Identify a risk that may have created the problem. b. Recommended an internal control to prevent the problem in the future.
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Unformatted text preview: 4. Physical inventory counts varied from inventory book amounts by more than 5 percent at two of the stores. In both cases, physical inventory was lower. a. Identify a risk that may have created the problem. b. Recommended an internal control to prevent the problem in the future. 5. Two of the stores seem to have an unusually high amount of sales returns for cash. a. Identify a risk that may have created the problem. b. Recommended an internal control to prevent the problem in the future. 6. In 10 of the stores, gross profit has dropped significantly from same time last year. a. Identify a risk that may have created the problem. b. Recommended an internal control to prevent the problem in the future....
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