Greenbug Ltd is a large wholesaler of garden equipment. The company's revenue and receipts cycle is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Greenbug Ltd is a large wholesaler of garden equipment. The company's revenue and receipts cycle is well staffed and is divided into clearly defined functions, namely receiving of orders, warehousing (picking), dispatch, invoicing, recording of sales, mailroom and receipting/cashier. It also has a "goods returned" function which handles the return of goods by customers and a credit management section. The following control procedures take place in the day to day running of the company. a. Jonny Backers follows up on trade references supplied by prospective customers seeking credit. b. Carl Jameson, checks the detail on all internal sales orders prepared by the six order clerks. C. Paul Waters, one of the warehouse clerks, makes out a back order note for an item which is ordered but is not "in stock". d. The gate controller counts the number of boxes on the company's delivery truck and agrees it to the delivery notes held by the driver. e. Themba Zulu compares the goods to be delivered to the picking slip and delivery note as they are packed into boxes for delivery. f. Peter Hedge phones all debtors who have exceeded their credit terms every 48 hours to establish when Greenbug Ltd can expect payment. g. When customers collect goods they have ordered, they sign a delivery note and retain a copy. h. Anele compares prices on the invoice to the official pricelist and reperforms the VAT calculation. i. Internal sales orders sent to the accounting department are filed in numerical sequence. j. Themba Zulu goes through the days picking slips at the end of each day to confirm that they have all been acted upon. YOU ARE REQUIRED TO indicate the function under which each of the control procedures (a-j) is most likely to occur at Greenburg Ltd. Greenbug Ltd is a large wholesaler of garden equipment. The company's revenue and receipts cycle is well staffed and is divided into clearly defined functions, namely receiving of orders, warehousing (picking), dispatch, invoicing, recording of sales, mailroom and receipting/cashier. It also has a "goods returned" function which handles the return of goods by customers and a credit management section. The following control procedures take place in the day to day running of the company. a. Jonny Backers follows up on trade references supplied by prospective customers seeking credit. b. Carl Jameson, checks the detail on all internal sales orders prepared by the six order clerks. C. Paul Waters, one of the warehouse clerks, makes out a back order note for an item which is ordered but is not "in stock". d. The gate controller counts the number of boxes on the company's delivery truck and agrees it to the delivery notes held by the driver. e. Themba Zulu compares the goods to be delivered to the picking slip and delivery note as they are packed into boxes for delivery. f. Peter Hedge phones all debtors who have exceeded their credit terms every 48 hours to establish when Greenbug Ltd can expect payment. g. When customers collect goods they have ordered, they sign a delivery note and retain a copy. h. Anele compares prices on the invoice to the official pricelist and reperforms the VAT calculation. i. Internal sales orders sent to the accounting department are filed in numerical sequence. j. Themba Zulu goes through the days picking slips at the end of each day to confirm that they have all been acted upon. YOU ARE REQUIRED TO indicate the function under which each of the control procedures (a-j) is most likely to occur at Greenburg Ltd.
Expert Answer:
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
You are a 3rd year trainee accountant at the internationally acclaimed audit firm, DPY Incorporated (DPY Inc.). You are based at the Durban office of DPY Inc. DPY Inc. are the auditors of Silky Hair...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
You have been given the following algorithm. What does it return? Input: Array A [ 1 . . . [ 1 . . . n ] ] Output: ? ? ? ? out 1 1 for i 2 2 to n do if A [ [ i ] < ] < A [ [ out ] ] then out i return...
-
Calculate the packing fraction for equilateral triangular rods stacked as shown in 2. 2.
-
On January 1, Molini Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued...
-
What are opportunity costs? Why are they important to managers? What is the opportunity cost of not investing in environmental protection? Provide an example to support your answer.
-
Effects of Burger Kings Current Liabilities on Its Statement of Cash Flows The following items are classified as current liabilities on Burger King Holdings, Inc.s balance sheets as of June 30, 2008,...
-
Iwasaki Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,300 of the components each year. The unit product cost of the component...
-
The Rock Glen House B&B is operated as a sole proprietorship and had the following income and expenses for the year: Room rental income $137,900 Vending machine income 2,000 Advertising expense...
-
Given the following Circuit The load current is 750mA and the transformer winding resistance is 0.4. V IN required to maintain regulation is 14.6V. Calculate the following: V ripple , I surge , PIV...
-
Taylor Marina has 300 available slips that rent for 800 per season. Payments must be made in full at the start of the boating season, April 1, 2015. The boating season ends October 31, and the marina...
-
Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Garison uses two sales promotion techniqueswarranties and...
-
Calafs Drillers erects and places into service an off-shore oil platform on January 1, 2015, at a cost of 10,000,000. Calaf estimates it will cost 1,000,000 to dismantle and remove the platform at...
-
On June 3, 2015, Hunt Company sold to Ann Mount merchandise having a sales price of 8,000 (cost 5,600) with terms of 2/10, n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales...
-
Brooks Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2015, the corporation...
-
The amount of calories consumed by customers at the Chinese buffet is normally distributed with mean 2711 and standard deviation 584. One randomly selected customer is observed to see how many...
-
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
-
Describe the difference between the profit margin for ROA and the profit margin for ROCE. Explain why each profit margin is appropriate for measuring the rate of ROA and the rate of ROCE,...
-
Ormond Co. acquired all of the outstanding common stock of Daytona Co. on January 1, 2017. Ormond Co. gave shares of its common stock with a fair value of $312 million in exchange for 100% of the...
-
Stebbins Corporation established a wholly owned Canadian subsidiary on January 1, Year 1, by contributing US$500,000 for all of the subsidiary's common stock. The exchange rate on that date was...
-
The shaft is supported by journal bearings at \(A\) and \(B\) that exert force components only in the \(x\) and \(z\) directions on the shaft. If the allowable normal stress for the shaft is...
-
The shaft is supported by bearings at \(A\) and \(B\) that exert force components only in the \(x\) and \(z\) directions on the shaft. If the allowable normal stress for the shaft is \(\sigma_{\text...
-
Determine the equivalent state of stress on an element if it is oriented \(50^{\circ}\) counterclockwise from the element shown. Use the stress transformation equations. 16 ksi 10 ksi
Study smarter with the SolutionInn App