Purchase Solution

Internal Controls at The Beat Company

Not what you're looking for?

Ask Custom Question

E8-5
Listed below are five procedures followed by The Beat Company.
1. Several individuals operate the cash register using the same register drawer.
2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
3. Ellen May writes checks and also records cash payment journal entries.
4. One individual orders inventory, while a different individual authorizes payments.
5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.

Instructions
If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is
violated. Use the table below.

Identify internal control weaknesses over cash disbursements and suggest improvements.

Identify internal control weaknesses for cash disbursements and suggest improvements.

Indicate whether procedure is good or weak internal control.

Procedure IC Good or Weak? Related Internal Control Principle
1.
2.
3.
4.
5.

Purchase this Solution

Solution Summary

The expert examines internal controls at The Beat Company. The weaknesses for cash disbursements are determined to suggest improvements.

Purchase this Solution


Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Motivation

This tests some key elements of major motivation theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.