Question: Golden Manufacturing Inc is a large public company that manufactures

Golden Manufacturing, Inc. is a large public company that manufactures and distributes a variety of handheld electronic devices. The company purchases a large quantity of raw materials in advance because it receives substantial volume discounts from its suppliers. Upon delivery of the raw materials, the storage warehouse manager fills out a receiving report and sends a copy to the accounting department. The raw materials are kept in the storage warehouse until the storage warehouse manager approves the release of raw materials after receiving a materials requisition form. During the manufacturing process, all documents that support the use of raw materials and direct labor that go into the products are forwarded to the accounting department for entry into the accounting system. After the product is completed, the finished good is transferred to the finished goods warehouse. The finished goods warehouse is locked up at the end of every day.

Identify the specific company controls in the example above. For each control state the purpose(s) of the control and the related management assertion(s).

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  • CreatedJanuary 21, 2015
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