Your small business client, Phillips Computer Repair Shop, is experiencing financial difficulties and has to lay off
Question:
Your small business client, Phillip’s Computer Repair Shop, is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees— Abigail, Bryan, and Chris— to maintain the best separation of duties.
Required:
Assign the following 10 duties to each of the three employees.
a. Reconcile bank statement.
b. Open mail and list checks.
c. Prepare checks for Phillip’s signature.
d. Prepare payroll checks.
e. Maintain personnel records.
f. Prepare deposit and take to bank.
g. Maintain petty cash.
h. Maintain accounts receivable records.
i. Maintain general ledger.
j. Reconcile accounts receivable records to general ledger account.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws