Assignment from readings

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Assignment from the Readings ACC/340 Assignment from the Readings 8-17 Fairfax Recreation Center (Internal Controls at a Fitness Center) The Fairfax Recreation Center is a neighborhood fitness center equipped with an indoor swimming pool, exercise equipment, and a running track. The Center is open seven days a week, from 8:00 A.M. to 10:00 P.M. Stationed just inside the front doors is a turnstile. An employee oversees access through the turnstile. Before anyone can enter the facility, they must either present their membership card or pay a $6 daily fee. When the employee at the turnstile collects cash for daily fees, he or she also has the visitor complete a waiver form. The employee then deposits the cash in a locked box…show more content…
e. The Landsford brothers had lived in Center County all their lives. Ben worked for the local mill in the accounts payable department, and Tom owned the local hardware store. The sheriff couldn’t believe that the brothers had created several dummy companies that sold fictitious merchandise to the mill. Ben had the mill pay for this merchandise in its usual fashion, and he wrote off the missing goods as ‘‘damaged inventory.’’ Ben does not appear to be a manager, so there should be a separation of duties with in the accounts payable department. The documents should be prepared by Ben, but should also be verified by a manger. There should also be internal audits that would bring to light any redundancies on approving officials or names within the organization. 9-16. Identify one or more control procedures (either general or application controls, or both) that would guard against each of the following errors or problems. a. A bank deposit transaction was accidentally coded with a withdrawal code. Feedback mechanism in the form of a receipt will identify this incident. The use of an edit test would check for b. The key-entry operator keyed in the purchase order number as a nine-digit number instead of an eight-digit number. AIS should have a check for the number of digits in that field. If the field is only 8 digits then it should be
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