Greenbug Ltd is a large wholesaler of garden equipment. The company's revenue and receipts cycle is...

 

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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.

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a Credit management section b Receiving ... View the full answer