AC571 week 3 assignment - AC571 Week 3 Assignment Problem...

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AC571 Week 3 Assignment Problem 6-2 a) A payroll clerk should not be given authority enters time sheet for other employees. Every employee should set up a password on their time sheet accounts. Neither employee nor supervisor can revise other employees’ time sheet account. After managers approve employees’ time sheet, payroll department should process the checks and mail the checks directly to employees’ addresses listed in their file. b) Incoming mail must be opened by a person who does not have access to the accounts receivable ledger. The receipts should be listed in detail with one copy and the actual receipts sent to the cashier to prepare the bank deposit, another copy sent to the accounts receivable department for entry in the accounts receivable subsidiary records, and a third copy sent to the accounting department for entry in the general ledger accounts receivable control account. c) In the case example, the cashier should not be given authority to place a purchase order and issue a check. This indicates a weakness in internal control. The department in need of the asset or service should send a properly approved, serially numbered requisition to the purchasing department. The requisitioning department should not have the authority to actually place the purchase order. d) When transfer parts from one department to another, the requesting department should issue a prenumbered internal invoice to the delivering department. The invoice should be listed in detail of parts requested with one copy and another copy sent to the delivering department. Employee who delivers parts to the requesting department should be the different employee who claims and receives parts. e) A receivable is recorded in the accounts receivable control account in the general ledger and in the accounts receivable subsidiary ledger. Periodically, an independent person should reconcile these two records. f) When customers return merchandise, a copy of return receipt should be sent to account
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This note was uploaded on 11/20/2011 for the course ACCT 571 571 taught by Professor Heirbaum during the Summer '11 term at Keller Graduate School of Management.

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AC571 week 3 assignment - AC571 Week 3 Assignment Problem...

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