Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

Task1. One of the responsibilities of management is to ensure the organisation has an effective system of internal control.

Required:

problem1. What do you understand by the term internal controls?

problem2. Define and describe five dissimilar types of internal control on which the auditor may wish to place reliance.

problem3. Internal controls are not solution for all the ailments of organization. State all four drawbacks of internal controls.

problem4. The following procedures for handling of cash remittances from customers are in effect at DEF Limited. Incoming mail is opened in mailroom, and all letters which consist of remittances are forwarded to the cashier. The cashier restrictively endorses all cheques and prepares an adding machine tape of them. The cashier prepares a remittance advice when the customer does not return the DEF remittance advice sent to the customers with monthly statements, unless the customer's cheque was accompanied by customer-prepared document which could be employed as a remittance advice. The cashier prepares an adding-machine tape of remittance advices and agrees the total to the tape of cheques received. The cashier uses one adding-machine tape for the bank deposit-slip she prepares and delivers with the cheque to the bank by messenger. The cashier delivers the remittance advices together with the second adding-machine tape to the debtors-ledger section where they serve as a source for posting to the accounts of individual debtors. The cashier prepares a memorandum listing of the receipts for the day which she delivers to the general-ledger section. The debtors-ledger section advises the general-ledger section of the total daily credits posted to individual accounts of debtors in order that this total can be posted to the credit of the control account for debtors in the general ledger. This total can also be agreed with the total supplied by the cashier.

i. describe any weaknesses in internal control surrounding cash receipts, and suggest two suggestions which you could make to the client, either one of which would eliminate these weaknesses.

ii. What are the potential effects of these weaknesses in internal control?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M96816

Have any Question? 


Related Questions in Financial Management

Lexington manufacturing inc lexington is negotiating for

Lexington Manufacturing, Inc. (Lexington) is negotiating for the purchase of a new piece of equipment for its current operations. Lexington has received an offer which specifies that the equipment could be purchased for ...

Suppose you conduct currency carry trade by borrowing 1

Suppose you conduct currency carry trade by borrowing $1 million at the start of each year and investing in New Zealand dollar for one year. One-year interest rates and the exchange rate between the U.S. dollar ($) and N ...

Broussard skateboards sales are expected to increase by 25

Broussard Skateboard's sales are expected to increase by 25% from $8.0 million in 2015 to $10.00 million in 2016. Its assets totaled $6 million at the end of 2015. Broussard is already at full capacity, so its assets mus ...

Evaluate the following three projects using the

Evaluate the following three projects, using the profitability index. Assume a cost of capital of 15 percent.   Project Cash Flows Liquidate Recondition Replace Initial Cash Outflow -$ 100,000 -$ 500,000 -$ 1,000,000 Yea ...

Use the following corporate bond quote information to

Use the following corporate bond quote information to answer the questions that follows. since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on today's da ...

Discusses the components meaning and uses of working

Discusses the components, meaning and uses of Working Capital Management and Discusses the meaning and uses of Cash Management and Comments on their similarities and the main discussion is to Differentiate between workin ...

An investment manager expects a stock to be quite volatile

An investment manager expects a stock to be quite volatile and is considering the purchase of either a straddle or a chooser option. The stock is priced at 44, the exercise price is 40, the continuously compounded risk-f ...

1 a trader was found guilty of violating insider trading

1) A trader was found guilty of violating insider trading laws. As part of his sentencing, he had to forfeit the excessive profits earned on the illegal trades. What does this conviction indicate about the current form o ...

Holly amp daughters inc knows it will need to begin making

Holly & Daughters, Inc. knows it will need to begin making an investment in training its employees in order to stay current on technological advances. The company anticipates it will send several employees to specialized ...

Nadine is retiring at age 66 and expects to live to age 82

Nadine is retiring at age 66 and expects to live to age 82. She has $136,000 in her retirement savings account. She is somewhat conservative with her money and expects to earn 6 percent during her retirement years. How m ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro