Prepare a list of internal control weaknesses observed by reviewing the flowcharts and operating procedures. Coordinate...
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Prepare a list of internal control weaknesses observed by reviewing the flowcharts and operating procedures. Coordinate tho int sales manager. A sales clerk prepares a four-part return authorization. Customers who want to return inventory to the company must receive prior permission from the Copies 1 and 2 go to the customer (one copy is to be returned with the goods) Copy 3 goes to the receiving department to alert them to the future delivery Copy 4 is sent to accounts receivable-billing and filed by customer When the goods are received, the receiving department stamps Copy 3 of the return authorization de "goods received" and forwards Copy 3 to the sales department. The sales manager then authorizes and prepares a two-part credit memorandum, No other means of reducing accounts receivable are authorized. Copy 1 goes to the customer Copy 2 goes to accounts receivable with Copy 3 of the return authorization The accounts receivable billing clerk then matches the documents with Copy 4 of the return authorization and enters the information into the accounting system and files the complete package by customer. Customer Order Filling The warehouse receives Copies 3, 4, and 5 of the sales order form and fills the order as quickly as possible. The shipping clerk checks the number of units of finished goods available. Items not in stock are noted on the copies as "out of stock" and Copy 3 is sent back to accounts receivable. Copies 4 and 5 stay with the deliver and serve as the shipping order. The delivery driver takes both copies of the shipping order. Upon delivery to the customer, the driver has the customer sign Copy 4 of the sales order form as a receipt. The driver returns this copy to the inventory clerk in the warehouse. The customer retains Copy 5 of the sales order. Over the counter sales to local customers are handled by any available warehouse employee who takes and fills these orders at the counter. Customers pay either by check or cash, or charge the purchase to their accounts. In the case of charges, charge tickets are prepared. The cash, checks and charge tickets are kept in a file and are periodically delivered to the accounts receivable billing bookkeeper. Prepare a list of internal control weaknesses observed by reviewing the flowcharts and operating procedures. Coordinate tho int sales manager. A sales clerk prepares a four-part return authorization. Customers who want to return inventory to the company must receive prior permission from the Copies 1 and 2 go to the customer (one copy is to be returned with the goods) Copy 3 goes to the receiving department to alert them to the future delivery Copy 4 is sent to accounts receivable-billing and filed by customer When the goods are received, the receiving department stamps Copy 3 of the return authorization de "goods received" and forwards Copy 3 to the sales department. The sales manager then authorizes and prepares a two-part credit memorandum, No other means of reducing accounts receivable are authorized. Copy 1 goes to the customer Copy 2 goes to accounts receivable with Copy 3 of the return authorization The accounts receivable billing clerk then matches the documents with Copy 4 of the return authorization and enters the information into the accounting system and files the complete package by customer. Customer Order Filling The warehouse receives Copies 3, 4, and 5 of the sales order form and fills the order as quickly as possible. The shipping clerk checks the number of units of finished goods available. Items not in stock are noted on the copies as "out of stock" and Copy 3 is sent back to accounts receivable. Copies 4 and 5 stay with the deliver and serve as the shipping order. The delivery driver takes both copies of the shipping order. Upon delivery to the customer, the driver has the customer sign Copy 4 of the sales order form as a receipt. The driver returns this copy to the inventory clerk in the warehouse. The customer retains Copy 5 of the sales order. Over the counter sales to local customers are handled by any available warehouse employee who takes and fills these orders at the counter. Customers pay either by check or cash, or charge the purchase to their accounts. In the case of charges, charge tickets are prepared. The cash, checks and charge tickets are kept in a file and are periodically delivered to the accounts receivable billing bookkeeper.
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Internal controlled weakness observed by reviewing flowcharts and operating procedures are as follow... View the full answer
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