Your client, Janice Rush, is the owner/manager of a store that sells jewelry, fine china, sterling...
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Your client, Janice Rush, is the owner/manager of a store that sells jewelry, fine china, sterling silver flatware, and other gifts. The store has 10 employees, mostly sales personnel who advise customers and handle the sales transactions. Ms. Rush is an astute business person, but she has little training in business and has asked for your help as she has noticed discrepancies in the amount of inventory she believes should be on hand and the amount of inventory actually on hand based on the physical inventory taken. After talking with Ms. Rush, you realize that she needs a better system of internal control over inventory. Write a letter to Ms. Rush in which you explain the concept of internal control and outline a system of internal control over inventory that she can put in place. Your client, Janice Rush, is the owner/manager of a store that sells jewelry, fine china, sterling silver flatware, and other gifts. The store has 10 employees, mostly sales personnel who advise customers and handle the sales transactions. Ms. Rush is an astute business person, but she has little training in business and has asked for your help as she has noticed discrepancies in the amount of inventory she believes should be on hand and the amount of inventory actually on hand based on the physical inventory taken. After talking with Ms. Rush, you realize that she needs a better system of internal control over inventory. Write a letter to Ms. Rush in which you explain the concept of internal control and outline a system of internal control over inventory that she can put in place.
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Dear Ms Rush Internal control is a system of procedures and policies that helps to ensure the accuracy and reliability of financial information promote operational efficiency and safeguard assets Ther... View the full answer
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