Hey guys/gals,
I need some additional help with a problem for my auditing class. The goal is to find the strengths and weaknesses of a companies processes.
I'm attaching a short questionairre (it's on two pages) and here is a link to the flow chart I've created for the company (the pdf was too large to attach):
Flow Chart (Visio-P-4_Apple_Blossom_Credit_Sales_System_Part1.pdf) - PDF Archive
Here are some strengths and weaknesses I have so far:
Strengths
o Shipped items are counted twice before shipment – once by stores (warehouse clerk) and once by repackaging area
o Files and ledgers are updated daily
o Journal entries are entered daily
o Accounts receivable sub-ledger and balancing reports are printed daily for reconciling back to General Ledger (it was not clear if or who is reconciling)
Weaknesses
o Shipped items are counted twice before shipment but recording of counts is completed once – shipping clerk and stores (warehouse clerk) should both write counts and initial sales invoice
o Overrides of credit should be entered directly into LAN software by Credit Manager instead of signing hard copy and Sales dept entering credit override
o Stores (warehouse clerk) updates order and ships without authorization – should be correct at time of entry (Sales dept) or go back to Sales dept to be fixed if incorrect
o Sales invoice (1) mailed to vendor for billing and sales invoice (2) mailed with shipment (serves as bill of lading) come from separate areas and could potentially not match. Sales invoice (2) can be updated to reflect quantities shipping while sales invoice (1) remains the same after originally being printed.
Does anyone have any additional input that I overlooked? Thank you!
I need some additional help with a problem for my auditing class. The goal is to find the strengths and weaknesses of a companies processes.
I'm attaching a short questionairre (it's on two pages) and here is a link to the flow chart I've created for the company (the pdf was too large to attach):
Flow Chart (Visio-P-4_Apple_Blossom_Credit_Sales_System_Part1.pdf) - PDF Archive
Here are some strengths and weaknesses I have so far:
Strengths
o Shipped items are counted twice before shipment – once by stores (warehouse clerk) and once by repackaging area
o Files and ledgers are updated daily
o Journal entries are entered daily
o Accounts receivable sub-ledger and balancing reports are printed daily for reconciling back to General Ledger (it was not clear if or who is reconciling)
Weaknesses
o Shipped items are counted twice before shipment but recording of counts is completed once – shipping clerk and stores (warehouse clerk) should both write counts and initial sales invoice
o Overrides of credit should be entered directly into LAN software by Credit Manager instead of signing hard copy and Sales dept entering credit override
o Stores (warehouse clerk) updates order and ships without authorization – should be correct at time of entry (Sales dept) or go back to Sales dept to be fixed if incorrect
o Sales invoice (1) mailed to vendor for billing and sales invoice (2) mailed with shipment (serves as bill of lading) come from separate areas and could potentially not match. Sales invoice (2) can be updated to reflect quantities shipping while sales invoice (1) remains the same after originally being printed.
Does anyone have any additional input that I overlooked? Thank you!
