Question

You were recently appointed the internal auditor for a private college. Your first assignment is to appraise the adequacy and effectiveness of the student registration procedures. You have completed your preliminary survey. Based on your interviews and a walk- through of the student registration operation, you prepared an informal flowchart.

Required
Examine the following informal flowchart and list five internal control weaknesses ( such as omission of certain steps or measures) in the student registration procedures. Admission— Processing of Registrations
a. Mailroom Opens all mail; prepares remittance advices and remittance listings. Sends copies of advices and listings to 1. cashier ( with cash and checks).
2. accounts receivable clerk.
3. general bookkeeper. Destroys other copies of advices and listings.
b. Registration clerk Receives three copies of completed registration forms from students. Checks for counselor’s or similar approval. Records appropriate fee from official class catalog. If completed properly, approves forms and sends student with registration forms to cashier. If not completed properly, returns forms to student for follow- up and reapplication.
c. Cashier Collects funds or forwards two copies of registration forms to billing clerk. Records cash receipts in daily receipts record. Prepares and makes daily deposits. Forwards duplicate receipted deposit slips and daily receipt records to general bookkeeper. Destroys copies of daily receipts records.
d. Billing clerk Receives two copies of registration form, prepares bill, and makes entries in registration (sales) journal. Forwards copies of billings and registration forms to accounts receivable clerk and copies of bill to general bookkeeper.
e. Accounts receivable clerk Posts accounts receivable subsidiary ledger detailed accounts from remittance listings. Matches billings and registration forms and posts accounts receivable subsidiary ledger detailed accounts.
f. General bookkeeper Journalizes and posts cash receipts and applicable registrations to general ledger. Enters registration ( sales) journal data in general ledger.



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  • CreatedFebruary 26, 2015
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