On the day of the inventory count, you attended depot nine at DinZee. You observed the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On the day of the inventory count, you attended depot nine at DinZee. You observed the following activities: 1. Prenumbered count sheets were being issued to client's staff carrying out the count. The count sheets showed the inventory ledger balances for checking against physical inventory. 2. All count staff were drawn from the inventory warehouse and were counting in teams of two. 3. Three counting teams were allocated to each area of the stores to count, although the teams were allowed to decide which pair of staff counted which inventory within each area. Staff were warned that they had to remember which inventory had been counted. 4. Information was recorded on the count sheets in pencil so amendments could be made easily as required. 5. Any inventory not located on the pre-numbered inventory sheets was recorded on separate inventory sheet - which were numbered by staff as they were used. 6. At the end of the count, all count sheets were collected and the numeric sequence of the sheets checked; the sheets were not signed. Required: List 6 weaknesses in the control system for counting inventory at depot nine. For each weakness, explain why it is a weakness and state how that weakness can be overcome. (Total 60 marks) On the day of the inventory count, you attended depot nine at DinZee. You observed the following activities: 1. Prenumbered count sheets were being issued to client's staff carrying out the count. The count sheets showed the inventory ledger balances for checking against physical inventory. 2. All count staff were drawn from the inventory warehouse and were counting in teams of two. 3. Three counting teams were allocated to each area of the stores to count, although the teams were allowed to decide which pair of staff counted which inventory within each area. Staff were warned that they had to remember which inventory had been counted. 4. Information was recorded on the count sheets in pencil so amendments could be made easily as required. 5. Any inventory not located on the pre-numbered inventory sheets was recorded on separate inventory sheet - which were numbered by staff as they were used. 6. At the end of the count, all count sheets were collected and the numeric sequence of the sheets checked; the sheets were not signed. Required: List 6 weaknesses in the control system for counting inventory at depot nine. For each weakness, explain why it is a weakness and state how that weakness can be overcome. (Total 60 marks)
Expert Answer:
Answer rating: 100% (QA)
Answer Weakness 1 Prenumbered count sheets issued to clients staff Explanation The use of prenumbered count sheets can lead to the possibility of missing or duplicate sheets which can result in inaccu... View the full answer
Related Book For
Posted Date:
Students also viewed these finance 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...
-
HANSEN ESTATE vs. HANSEN Informal Case summary questions. 1. what is the proper Citation? 2. what are the Facts? 3. what are the Issue(s)? 4. Held ? 5. what are the reasons Reason(s)? Case Name:...
-
Consider the following table of countries and their associated maximum production possibilities for wheat and wool below. Note that these numbers represent tonnes of output per day. Country Wheat...
-
A four-year promissory note for $3800 plus interest at 9.5% compounded semiannually was sold 18 months before maturity for $4481. What quarterly compounded nominal rate of return will the buyer...
-
Over the circle X2 + Y2 (a) What is fY|X(y|x)? (b) What is E[Y|X = x]? otherwise.
-
State the steps in the audit program for testing cash receipts transactions in a manual system that involves the use of a random sample.
-
1. Allison Jones of Jonesboro, Arkansas, is considering paying $150 a year for an extended warranty on several of her major appliances. If the appliances are expected to last for five years and she...
-
What is cultural exploration and how does it affect hotels and restaurants ?
-
Given: Roller A is moving to the right at 3 m/s. Find: The velocity of B at the instant = 30. Plan: B 1.5 m 0 = 30% VA = 3 m/s
-
In The Economist's most recent version of its Big Mac Index, which refects prices as of December, 2020, the Brazilian real (BRL) was reported as being nearly 30% below the U.S. dollar on a relatve...
-
What was the compound annual return for the ABC fund held by the couple?
-
Can the Martinez family meet their total monthly expenses if they have a combined monthly net income of $3,785.00? Use their budget sheet to answer the question .
-
As a newly qualified auditor, you are asked to perform an audit of an Islamic digital bank. The Islamic Digital Bank are specialised and many of its financial services contract are linked to the...
-
Annie's is a gift shop in Texas. Her suppliers offer the firm credit on terms of 2/10 net 30 days. She does not take discounts but rather pays on 25 days. Her new finance manger is considering...
-
1. A free-market economy allocates its resources primarily through: a. Central planning b. The price system c. Negotiation d. Bargaining e. None of the above 2. Consumer advocates often argue that...
-
Which task is performed by a book-keeper? A. Analysing the trading results B. Entering transactions in the ledger C. Preparing year-end financial statements D. Providing information for...
-
What happens if a classification tree is grown to its fullest extent? a. Each leaf node will be 100% pure (all Class 1 observations or all Class 0 observations) b. The best predictive performance on...
-
Which of the following statements about bagging is false? a. Bagging generates a composite prediction by weighting the votes of the individual classifiers by their individual accuracies. b. Bagging...
-
It is known that tree-based learning is unstable. What does this mean? a. Trees are poor predictive models. b. The predictive performance of the tree varies dramatically based on the training data...
Study smarter with the SolutionInn App