A sales representative of QQ Equipment has put up a sales order. The sales order was...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A sales representative of QQ Equipment has put up a sales order. The sales order was then copied to the warehouse where the ordered items were packed and shipped to the customer. Upon the completion of the shipment, the shipping document that was verified by the customer was returned to the warehouse. The warehouse supervisor inadvertently destroyed the packing slip and shipping document. Without these documents, the Billing Department was not aware of the shipment and thus, did not bill the customer. Although the sales order was submitted to the Billing Department by the sales office, due to the missing packing slip and shipping document, the sales order was considered as cancelled. The customer and the warehouse supervisor were good friends. Untitled title 1a. Identify the internal control weakness that enable the fraudulent behaviour. * Your answer 1b. Determine the internal control procedure that would prevent the fraud * Your answer A sales representative of QQ Equipment has put up a sales order. The sales order was then copied to the warehouse where the ordered items were packed and shipped to the customer. Upon the completion of the shipment, the shipping document that was verified by the customer was returned to the warehouse. The warehouse supervisor inadvertently destroyed the packing slip and shipping document. Without these documents, the Billing Department was not aware of the shipment and thus, did not bill the customer. Although the sales order was submitted to the Billing Department by the sales office, due to the missing packing slip and shipping document, the sales order was considered as cancelled. The customer and the warehouse supervisor were good friends. Untitled title 1a. Identify the internal control weakness that enable the fraudulent behaviour. * Your answer 1b. Determine the internal control procedure that would prevent the fraud * Your answer
Expert Answer:
Answer rating: 100% (QA)
1a The internal control weakness that enabled the fraudulent behavior was the lack of documenta... View the full answer
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
Posted Date:
Students also viewed these general management questions
-
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...
-
Design considerations for the bumper B on the train car of mass M require use of a nonlinear spring having the load-deflection characteristics shown in the graph. Select the proper value of K so that...
-
Crosby is known for his advocacy of zero-defects management and prevention; Crosby's Quality Vaccine consists of which three ingredients? Group of answer choices A. Determination, Education, and...
-
Identify the three goals of a project and describe how the project manager achieves them. What does it mean for a project to be overdetermined?
-
Which of the following best describes the meaning of the multiplicities next to the number 6 in the preceding diagram? a. Each Buy/Sell Transaction involves one Broker. b. Each Buy/Sell Transaction...
-
Have you ever read in the newspapers about the types of people who engage in company misdeeds?
-
Santana Rey created Business Solutions on October 1, 2011. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up...
-
Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $400 per bike. It could locate the plant in Province P, which levies a 20 percent tax on...
-
Champion Inc. purchased a call option as a speculative investment on January 1 for $125, allowing Champion Inc. to purchase 200 of Rising Star Co. common shares at $100 per share through January 1 of...
-
Let A be an n x n matrix and let B = A - al for some scalar . How do the eigenvalues of A and B compare? Explain.
-
Suppose that the Phillips curve is given by =+0.1-24 + and expected inflation is given by = (1 - 0) + 0-1 where 8 is equal to zero and = 0.01 and does not change. The economy is initially at the...
-
How has the COVID 19 changed the way healthcare is implemented in the acute setting and in the community? Since COVID-19 restrictions have relaxed in the community, what change are you seeing in the...
-
What does the following return, when passed the argument 3? int example(int n) { if (n == 0) return 0; else return example(n-1) + n*n*n; }
-
You are a corporate accountant for White Oak, Inc. Your organization's competitor, Black Elm, Inc., has recently shifted its cost structure from variable cost to fixed cost. Your supervisor has asked...
-
A boat is circling a ship that is using a tracking radar. The system as shown in FIGURE (i) is given as a unity feedback system in FIGURE (ii) with a forward transfer function of the plant, G(s) =...
-
Define following term: 1. Stoichiometric (Theoretical) Air 2. Excess Air
-
Select a mass spectrometric technique with the highest mass resolution for identifying an unknown compound being eluted from a liquid chromatography column
-
When an auditor identifies internal control deficiencies, what levels of internal control deficiencies must be reported to those charged with governance of the entity? a. Material weaknesses only. b....
-
When auditing a fixed asset account such as land, buildings, and equipment, the auditor will normally: a. Vouch the book value of fixed assets to underlying purchase documents. b. Place the greatest...
-
A team from More & Less CPAs are auditing SportsLovers, a U.S. sporting goods manufacturer and distributor. The audit team recently had a meeting to discuss how to perform the current ADA, which is...
-
Deficits and fiscal consolidation As seen in the following table, the 2008 financial crisis left the United States with an enormous federal budget deficit in 2009. There was a substantial fiscal...
-
Which (if any) of the following statements about Pvalues is CORRECT? A. The Pvalue from a hypothesis test is the probability of obtaining your results, or more extreme results. B. The Pvalue from a...
-
Which (if any) of the following statements about the Type I error is CORRECT? A. The Type I error is the probability of rejecting the null hypothesis when it is true. B. The Type I error is the...
Study smarter with the SolutionInn App