acc562 week 6 discussion 2

acc562 week 6 discussion 2 - ,Inc Based on your analysis of...

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Case 6B - Goodner Brothers, Inc.  Based on your analysis of the “Goodner Brothers, Inc.” case, respond to each of the discussion points: Discuss the key internal control weaknesses that were evident in the Huntington unit’s operation. Discuss the control policies that may have alleviated the control weakness. Besides Woody Robinson, what other parties were at least partially responsible for the inventory losses Goodner suffered? that no individual in the company should perform more than any one of the function of authorization, custody, or recordkeeping Making one individual responsible for all of the related activities increases the potential for errors and irregularities. Discuss the key internal control weaknesses that were evident in the Huntington unit’s operation. The key internal control weaknesses that were evident in the Huntington unit’s operation can be listed as follows. 1. Unrestricted access to the accounting system . Besides the Huntington facility’s bookkeeper, the unit’s sales manager and two sales representatives had unrestricted access to the accounting system. The sales reps routinely accessed, reviewed, and updated their customers’ accounts. 2. Unrestricted access to the inventory storage areas . Sales representatives had direct access to the inventory storage areas. During heavy sales periods, sales reps often loaded
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acc562 week 6 discussion 2 - ,Inc Based on your analysis of...

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