ASSIGNMENT QUESTIONS Question 1 [CLO 2,3] (6 Marks) Note: Attempt ALL of the following questions: Parts ab CL 23 Marks 33 a. Specify the primary key(s), foreign key(s), and other data for each of the following table. Table No mary key Foreign Keys Other Attribute b. Read the following scenario and answer the question that follows: You are an audit supervisor assigned to a new client, Go- Go Corporation, which is listed on the New York Stock Exchange. You visited Go-Go's corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company's accounting policies, controls, and systems. During this visit, the following events occurred: a. You met with Go-Go's audit committee, which consists of the corporate controller, treasurer, financial vice president, and budget director. b. You recognized the treasurer as a former aide to Ernie Eggers, who was convicted of fraud several years ago. c. Management explained its plans to change accounting methods for depreciation from the accelerated to the straight-line method. Management implied that if your firm does not concur with this change, Go-Go will employ other auditors. d. You learned that the financial vice president manages a staff of five internal auditors. e. You noted that all management authority seems to reside with three brothers, who serve as chief executive officer, president, and financial vice president. Required: The information you have obtained suggests potential problems relating to Go-Go's internal environment. Identify the problems, and explain them in relation to the internal environment concepts. Question 2 (CLO 4] (6 Marks) Read the following case and answer the questions listed relation to the Internal environment concepts Question 2 [CLO 4] (6 Marks) Read the following case and answer the questions listed below: O'Brien Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building and the production, shipping, and receiving departments are housed in a renovated warehouse a few blocks away. Customers place orders on the company's website, by fax, or by telephone. All sales are on credit, FOB destination. During the past year sales have increased dramatically but 15% of credit sales have had to written off as uncollectible, including several large online orders to first- time customers who denied ordering or receiving the merchandise. Customer orders are picked and sent to the warehouse, where they are placed near the loading dock in alphabetical sequence by customer name. The loading dock is used both for outgoing shipments to customers and to receive incoming deliveries. There are ten to twenty incoming deliveries every day, from a variety of sources. The increased volume of sales has resulted in a number of errors in which customers were sent the wrong items. There have also been some delays in shipping because items that supposedly were in stock could not be found in the warehouse. Although a perpetual inventory is maintained, there has not been a physical count of inventory for two years. When an item is missing, the warehouse staff writes the information down in log book. Once a week, the warehouse staff uses the log book to update the inventory records. The system is configured to prepare the sales invoice only after shipping employees enter the actual quantities sent to a customer, thereby ensuring that customers are billed only for items actually sent and not for anything on back order. Required: a. Identify at least five weaknesses in O'Brien Corporation's revenue cycle activities. (3 Marks) b. Recommend control procedures that should be added to the system to correct the weakness. (3 Marks) ASSIGNMENT QUESTIONS Question 1 [CLO 2,3] (6 Marks) Note: Attempt ALL of the following questions: Parts ab CL 23 Marks 33 a. Specify the primary key(s), foreign key(s), and other data for each of the following table. Table No mary key Foreign Keys Other Attribute b. Read the following scenario and answer the question that follows: You are an audit supervisor assigned to a new client, Go- Go Corporation, which is listed on the New York Stock Exchange. You visited Go-Go's corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company's accounting policies, controls, and systems. During this visit, the following events occurred: a. You met with Go-Go's audit committee, which consists of the corporate controller, treasurer, financial vice president, and budget director. b. You recognized the treasurer as a former aide to Ernie Eggers, who was convicted of fraud several years ago. c. Management explained its plans to change accounting methods for depreciation from the accelerated to the straight-line method. Management implied that if your firm does not concur with this change, Go-Go will employ other auditors. d. You learned that the financial vice president manages a staff of five internal auditors. e. You noted that all management authority seems to reside with three brothers, who serve as chief executive officer, president, and financial vice president. Required: The information you have obtained suggests potential problems relating to Go-Go's internal environment. Identify the problems, and explain them in relation to the internal environment concepts. Question 2 (CLO 4] (6 Marks) Read the following case and answer the questions listed relation to the Internal environment concepts Question 2 [CLO 4] (6 Marks) Read the following case and answer the questions listed below: O'Brien Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building and the production, shipping, and receiving departments are housed in a renovated warehouse a few blocks away. Customers place orders on the company's website, by fax, or by telephone. All sales are on credit, FOB destination. During the past year sales have increased dramatically but 15% of credit sales have had to written off as uncollectible, including several large online orders to first- time customers who denied ordering or receiving the merchandise. Customer orders are picked and sent to the warehouse, where they are placed near the loading dock in alphabetical sequence by customer name. The loading dock is used both for outgoing shipments to customers and to receive incoming deliveries. There are ten to twenty incoming deliveries every day, from a variety of sources. The increased volume of sales has resulted in a number of errors in which customers were sent the wrong items. There have also been some delays in shipping because items that supposedly were in stock could not be found in the warehouse. Although a perpetual inventory is maintained, there has not been a physical count of inventory for two years. When an item is missing, the warehouse staff writes the information down in log book. Once a week, the warehouse staff uses the log book to update the inventory records. The system is configured to prepare the sales invoice only after shipping employees enter the actual quantities sent to a customer, thereby ensuring that customers are billed only for items actually sent and not for anything on back order. Required: a. Identify at least five weaknesses in O'Brien Corporation's revenue cycle activities. (3 Marks) b. Recommend control procedures that should be added to the system to correct the weakness