As an internal auditor at Martin's Manufacturing, you have been tasked with preparing internal control testing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
As an internal auditor at Martin's Manufacturing, you have been tasked with preparing internal control testing plans for this year's business operations audit over the conversion processes. You have been given a list of controls from the prior year's workpapers. Unfortunately, last year's internal audit senior failed to include the control owners or the area of the conversion process for each, and the senior is no longer with Martin's Manufacturing. In preparation for this year's audit, complete the following two questions using the list of internal controls in the table below. A. Identify the business stakeholders your team needs to meet with during the engagement by assigning an employee job title to the Control Owner column for each internal control. B. To assist your team in planning the scope of the engagement, identify in which of the following areas of the conversion process the internal control is found: i. ii. iii. iv. V. vi. vii. Product development Production planning and scheduling Manufacturing operations Quality management Inventory management Supply chain management Product cost management 1. P N 2. 3. 4. 5. 6. 7. 8. 9. 10. Internal Control The system analyzes standard and actual manufacturing costs and variances. An annual review of employee performance is performed. Access to the warehouse is limited to authorized employees only. Inventory counts are completed on a monthly basis. The system creates purchase requisitions and orders electronically based on customer demand. Production decisions made by management must be based on sales forecasting, product profitability analysis, and inventory management. The inventory records must be periodically reconciled to the control accounts in the general ledger and to the physical inventory on hand. Documented policies and procedures for product safety and quality include roles and responsibilities of inspectors and the handling of exceptions. Product costs are standardized and reviewed and revised regularly, in accordance with documented policies and procedures. Policies and procedures related to the review, change, and authorization of existing bills of materials, operations lists, and production schedules are clearly documented. Control Owner(A) Area(B) As an internal auditor at Martin's Manufacturing, you have been tasked with preparing internal control testing plans for this year's business operations audit over the conversion processes. You have been given a list of controls from the prior year's workpapers. Unfortunately, last year's internal audit senior failed to include the control owners or the area of the conversion process for each, and the senior is no longer with Martin's Manufacturing. In preparation for this year's audit, complete the following two questions using the list of internal controls in the table below. A. Identify the business stakeholders your team needs to meet with during the engagement by assigning an employee job title to the Control Owner column for each internal control. B. To assist your team in planning the scope of the engagement, identify in which of the following areas of the conversion process the internal control is found: i. ii. iii. iv. V. vi. vii. Product development Production planning and scheduling Manufacturing operations Quality management Inventory management Supply chain management Product cost management 1. P N 2. 3. 4. 5. 6. 7. 8. 9. 10. Internal Control The system analyzes standard and actual manufacturing costs and variances. An annual review of employee performance is performed. Access to the warehouse is limited to authorized employees only. Inventory counts are completed on a monthly basis. The system creates purchase requisitions and orders electronically based on customer demand. Production decisions made by management must be based on sales forecasting, product profitability analysis, and inventory management. The inventory records must be periodically reconciled to the control accounts in the general ledger and to the physical inventory on hand. Documented policies and procedures for product safety and quality include roles and responsibilities of inspectors and the handling of exceptions. Product costs are standardized and reviewed and revised regularly, in accordance with documented policies and procedures. Policies and procedures related to the review, change, and authorization of existing bills of materials, operations lists, and production schedules are clearly documented. Control Owner(A) Area(B)
Expert Answer:
Answer rating: 100% (QA)
A Identifying Control Owners 1 The system analyzes standard and actual manufacturing costs and variances Cost Accountant 2 An annual review of employe... View the full answer
Related Book For
Accounting Information Systems
ISBN: 9780132871938
11th Edition
Authors: George H. Bodnar, William S. Hopwood
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
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...
-
You are the Global Corporate Security Manager for a multi-national financial institute based at Canary Wharf, London, UK. Your firm employs approximately 5,000 people, with office locations in...
-
The stator of a 220-V, 60-Hz induction motor has 12-turn coils. You wish to re-wound it for working at 380-V, 50-Hz. While maintaining the flux same as of original motor, calculate the number of...
-
In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was 4.36 years. Construct a table like Table 24.2 to show that this is so. Proportion of Total Value (PV(C,J/V) Proportion of...
-
Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a...
-
Moving further, classify the business transactions of Surya Medical Equipments as recorded in the journal in the previous chapter and post them in to the ledger of the firm.
-
The widget industry is competitive and a source of localized air pollution (the pollution affects only people who live near widget factories). The following graph shows the demand for widgets and the...
-
In March 2022, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Gingers gift tax liability for 2022 if she and Greg elect gift splitting and Greg...
-
A firm sells a product in a market where there are two types of consumers, high and low-valuation consumers. There are equally many of the two types of consumers, and the total number of consumers is...
-
The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales...
-
WW Company Limited ("the Company") is a Hong Kong corporation engaged in the retails of furniture with various chain stores in Hong Kong. The Company's statement of profit or loss for the year ended...
-
Air Canada Robert Milton had been fascinated by flying ever since childhood and dreamed of running an airline company. But as he grew up and entered the industry, Milton came to see how poorly the...
-
Write a MATLAB script utilizing IF-ELSEIF-ELSE statements that asks the user to enter a grade between 0 and 100 (0 is the minimum grade and 100 is the maximum). After the user has entered their...
-
Suppose a manager models their financials and has to account for the maximum of two costs. What is the best way to model this and maintain linearity?
-
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable Year 2 $ 9,883 22,424 Year 1 $...
-
1. Research and Development decreased from $31 million to $500,000, a 98% decrease the following year. Other than simply not having a project to work on an invest in, what would be the reason for the...
-
How does Kant answer Humes bundle theory of self? Do you think he is successful?
-
Identify several general ledger reports that might be prepared after updating the general ledger with computer batch processing.
-
Distinguish between the conceptual level, the logical level, and the physical level of database architecture.
-
Consider an open purchase order file in a manufacturing company. Identify several other files to which the purchase order file might be linked (chained) through the use of pointer fields.
-
The energy levels of an imperfect Fermi gas in the presence of an external magnetic field \(\boldsymbol{H}\), to the first order in \(a\), may be written as...
-
Solve the Gross-Pitaevskii equation and evaluate the mean field energy, see equations (11.2.21) and (11.2.23), for a uniform Bose gas to show that this method yields precisely equation (11.2.6).
-
Solve the Gross-Pitaevskii equation and evaluate the mean field energy, see equations (11.2.21) and (11.2.23), for an isotropic harmonic oscillator trap with frequency \(\omega_{0}\) for the case \(N...
Study smarter with the SolutionInn App