ACC 546 - Week 3 - 15797

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Individual assignment: the Audit Report and Internal Control Evaluation

 

Solution Description

 

Week three

 

Individual assignment: the Audit Report and Internal Control Evaluation

 

 

 

Evaluation of evidence provided by Apollo Shoes

 

The information regarding the processing of sales transactions was provided by Apollo Shoes. This information can be evaluated with the help of an internal control questionnaire. I will be summarizing the findings of the questionnaire.

 

We discovered that the credit department acts independently of sales department. The credit manager is present in the treasurer’s department and approves the sales order after considering the credit history of the customers. This proved that the controls such as segregation of duties existed at Apollo Shoes. No information was available regarding the type of sales that occurred and whether the same procedures which are described below were applied to control these sales. Then it was determined that blank sales invoices had a restricted access as they were kept safely in a locked closet. Hence, a physical control was in place.

 

 The evi