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Unit 3 Homework Guidance - LO 3,4 PROBLEM 6-5 INTERNAL...

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LO 3,4 PROBLEM 6-5 INTERNAL CONTROL
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1. Morris Mart suffers from a lack of segregation of duties. Mary handles all tasks associated with collection of customer accounts. 2. Mary should not handle all aspects of accounts receivable, billing, and collection. Two different employees should mail invoices and record the amounts billed. Two employees should be present when the mail is opened. Another employee should be responsible for recording collections from customers. Finally, all employees should be required to take vacations, and there should be rotation of job duties among employees. 3. Someone should explain to Mary that she personally is not the problem but that a good system of internal control requires certain changes to be made. This could be explained to her not in the context of fraud but rather in the context of the necessity to verify and check the work performed by all employees.
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LO 2 PROBLEM 7-3 ACCOUNTS RECEIVABLE TURNOVER FOR COCA-COLA AND PEPSICO 1. Accounts receivable turnover ratios:
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