Flowchart interpretation and internal controls analysis (CMA adapted. June 1994) The flowchart below depicts the sales/collection process for Richards Furniture Company. a mid-sized retailer of living room and bedroom furniture.

a. Identify and describe at least three weaknesses in the flowchart itself. For example. it does not have a 'start" symbol.

b. What internal control weaknesses are evident based on the flowchart? Suggest controls that will address them.

c. List the steps Richards should complete as pad of the process depicted. Then. redraw the flowchart based on them.

Transcribed Image Text:

Salesperson Prepare sales invoice Sales invoice (4 copies) Three copies go to the cashier, one, is retained in the sales book Cashier Sales invoice (3 copies) 1-0 Approve sale and process Assign consecutive number Cash register Assistant Manager Validated invoice, check, or cash return slip Tape Reconcile Prepare Deposit EVOL bank documents deposit and prepare One copy of the validated invoice goes to the customer. One stays in the store; the third goes to the assistant manager report Manager Reconciled report Review bank deposit Date To bank Salesperson Prepare sales invoice Sales invoice (4 copies) Three copies go to the cashier, one, is retained in the sales book Cashier Sales invoice (3 copies) 1-0 Approve sale and process Assign consecutive number Cash register Assistant Manager Validated invoice, check, or cash return slip Tape Reconcile Prepare Deposit EVOL bank documents deposit and prepare One copy of the validated invoice goes to the customer. One stays in the store; the third goes to the assistant manager report Manager Reconciled report Review bank deposit Date To bank

Answer rating: 100% (QA)

a Identify and describe at least three weaknesses in the flowchart itself Flowchart is a graphical r... View the full answer