See attached for the three problems.© BrainMass Inc. brainmass.com June 3, 2020, 9:38 pm ad1c9bdddf
The weakness in internal control relating to warehouse clerk
The same warehouse clerk prepares the Shipping Advice and the same warehouse clerk releases merchandise to the carrier.
The weakness in internal control relating to Bookkeeper A:
The same bookkeeper authorizes customer credit and prepares the invoice for the customer.
The weakness in internal control relating to collection clerk:
The collection clerk receives the checks from the customers and posts these to Cash Receipts Journal. He also maintains the Cash Receipts Journal, deposits the checks with the bank, receives bank statement and reconciles bank statement.
The strengths in the internal control system are:
The physician prepares a pre numbered slip.
A different clerk does the pricing of the services provided.
A different clerk carries out procedures for realizing the payment.
Only the manager has the authority to approve credit.
A separate clerk has been ...
This solution gives you the answers to three challenging audit problems.