Identify and describe [briefly] five weakness and the assertions at risk.

$16.00

Description

Identify and describe [briefly] five weakness and the assertions at risk. Locate them on the flowchart.

The sheet entitled ‘FLOWCHART’ is the corrected version of FIG 11.1, with some liberties taken to make sense of the authors’ attempt.
Assume that it correctly descrigbes the client’s Sales/Accounts Receivable procedures.
The system described in that flowchart contain at least ten weaknesses [documentation, sequence of procedures, etc]
Identify and describe [briefly] five weakness and the assertions at risk. Locate them on the flowchart.
DO NOT BE CONCERNED WITH THE DATA PROCESSING OR OPERATIONS CONTROL ACTIVITIES.
PLACE AN ‘X’ UNDER THE AFFECTED ASSERTION[S] AT RISK IN THE ROW FOR EACH IDENTIFIED WEAKNESS

WEAKNESS DESCRIPTION
1
2
3
4
5

Copy the numbered red circles and paste to the locations on the flowchart

Existence or
Occurrence

Completeness

Valuation or
Allocation

Accuracy

Cutof

SALES

CREDIT

FINISHED GOODS

SHIPPING

Customer

BILLING

Sales Order
2ales Order

B

Customer’s
Purchase Order

1
Customer’s
Purchase
Order

A

E
#
A

Prepare
Sales
Order

Approved
Sales Order
3Sales Order

A/R aginger

Customer’s
Purchase
Order

Filed by
by
S/O # pending
receipt of merchandise

Customer’s
Purchase
Order
Sales Order
1ales Order

Sales Order
2Sales Order
1
B

Approve
Credit *

2Sales Order
Sales Order
Sales Order
3Sales Order
4Sales Order
5Sales Order
Sales Order
6Sales Order

Customer’s
Purchase Order

3

Customer

*Credit rejection not
described in this flowchart

#

Approved
Sales Order
4Sales Order

3

Prepare Bill of
Lading & ship
merchandise

Approved
Sales Order
4Sales Order

NOTE: All documents are prenumbered
#

Fle by S/O #
pending notice
of shipment

1

Release
Goods
for
Shipping

Filed
by
Order
Number

#

1

Filed
by
Order
Number

2Sales Order
3Sales Order
Bill of Lading
4Sales Order

Sales Order
2Sales Order

Approved
Sales Order
3ales Order
Customer’s
Purchase
Order

Customer

Shipper

#

Sales Order
1ales Order
Approved
Sales Order
3ales Order
Bill of Lading
1Sales Order

Filed by order #
until end of day

Filed
by
Order
Number

C
U
S
T
O
M
E
R

#

P
A
Y
M
E
N
T
S

Customer’s
Purchase
Order

AT
END
OF
DAY

Sales Order
1ales Order
Approved
Sales Order
3ales Order
Bill of Lading
1Sales Order
C

Calculates
batch total
and records
in log

Control total
logOrder

Enters sales
transactions
in batches

Data entry

D
Customer’s
Purchase
Order
Sales Order
1ales Order
Approved
Sales Order
3ales Order
Bill of Lading
1Sales Order

#

Filed
by
Order
Number

Custome

REMITTAN
ADVICE WI
CHECK

DATA PROCESSING

OPERATIONS CONTROL

BILLING
PROGRAM

D

C

Control totals
&exception
report

Control total
logOrder
Sales
transactions
file

Sales
invoiceer

Customer

Compare
computer
control totals
to log &
investigate
exceptions

Control totals
&exception
report
Control total
logOrder

ACCOUNTS
RECEIVABLE
UPDATE
PROGRAM

Customer

D
REMITTANCE
ADVICE WITH
CHECK

Data entry

A/R aginger

A/R
MASTER
FILE
E

File
by
Date

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