Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Richie was the Controller at Ralph Malph Enterprises (RME), a publicly traded sales supported company. He started the job six months ago and after observing the activities in his area,he determined that the accounts receivables procedures needed to be tightened up. He approached Marion, the Accounts Receivable clerk, requesting her assistance in documenting the procedures related to new customer approvals, credit limits, and cash receipts. Marion indicated that there were no formal procedures for approving new customers-she received names and billing addresses from the sales representatives, Warren, Arthur, and Howard. When the information was passed on from the sales representatives, Marion then performed file maintenance to add the new customers to the customer master file without putting a customer file together for review. Marion then told Richie that the credit limit was set at whatever level the related sales representative told her to give the customer. As for cash receipts, Marion prepared the deposits and took the deposits to the bank, reconciling the bank statement on a monthly basis. Marion also entered the cash receipts into the system. Richie was troubled, because according to the sales representatives and Marion, previous controllers and some of the executive-level management had never felt having formal authorization and review procedures for accounts receivable was important. Richie noted that this "tone at the top," which was lackadaisical (at best), could lead to the perpetration of fraud throughout the organization. Richie realized that the combination of a lack of control procedures and a lax control environment could cause RME to have problems with the SEC due to lack of compliance with the Sarbanes-Oxley Act. He needed to get controls in place quickly, especially since the external auditors were due to arrive in less than three months.

1. Identify three (3) weaknesses in the current accounts receivable process in comparison to the internal controls that you would expect to see present.
2. Name two (2) recommendations to improve the weaknesses identified in #1 above.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M940118

Have any Question? 


Related Questions in Accounting Basics

Accounting helpkelloggk8286nyse general millsgis7295nyse

Accounting Help Kellogg K $82.86 NYSE General Mills GIS $72.95 NYSE Target TGT $70.12 NYSE Choose three of the stocks - two within the same industry plus one additional stock - from the Company Selection and Stock Watch ...

Accounting paper-research a current article regarding

Accounting Paper- Research a current article regarding accounting in government. and write a summary of the article in 350 to 700 words applying concepts you've learned in this course to assessing the content of the arti ...

Using financial statement disclosures to infer bad debt

Using Financial Statement Disclosures to Infer Bad Debt Expense The 2009 annual report for Sears Holding Corporation contained the following Description Using Financial Statement Disclosures to Infer Bad Debt Expense The ...

Problemyou have decided to start a business selling widgets

Problem: You have decided to start a business selling widgets. You form a corporation, Widgets, Inc. You paid $10 per share for 1,000 shares of stock on January 1, 2016. Next the company borrowed $30,000 from your Aunt S ...

Write the given assignmentinstructions this assignment is

Write the given assignment. Instructions This assignment is an essay and should include an abstract, introduction, body, conclusion and bibliography. Maximum word count 1500 words not including the abstract and bibliogra ...

Reference example example in text citation she stated

Reference example: Example : In text citation : She stated, "Students often had difficulty using APA style" (Jones, 1998, p. 199), Reference citation: Bernstein, M. (2002). 10 tips on writing the living Web. A List Apart ...

Principles of accountingyou will select a company from this

Principles of Accounting You will select a company from this list, and you will analyze the company's financial performance, highlighting accounting principles and methods learned in this course. This project requires yo ...

Fasb codification systemaccess the fasb online website and

FASB Codification System Access the FASB Online website and familiarize yourself with the contents. Write a 350- to 700-word paper in which you answer the following questions: • What is the FASB Codification System? • Wh ...

Problem-fenwicke company organized and began operating a

Problem- Fenwicke Company organized and began operating a subsidiary in a foreign country on January 1, 2015, by investing LCU 68,000. This subsidiary immediately borrowed LCU 170,000 on a five-year note with 6 percent i ...

Group assignment - group report on e-business website

Group Assignment - Group Report on E-Business Website Evaluation Learning outcomes- 1. Define electronic commerce and describe emerging online technologies and trends and their influence on the electronic commerce market ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate