Fresh & Fast Pty Ltd

In order to confirm the accounts receivable balances, I decided to use positive confirmations since this was my first time auditing the company and the collateral for the loan would be the receivables. The confirmations helped to verify the accuracy and existence of the accounts. I also calculated the Receivables Turnover Ratio in order to better evaluate the overall success of collection on accounts. The sample size that I chose was determined by the factors of tolerable misstatement, inherent risk, control risk, achieved detection risk

I would recommend that CCL create a policy regarding Accounts Receivables immediately. The method for determining the bad debt amount should be determined by CCL management. Methods such a percentage of sales or a percentage of Account Receivables can be used. Whichever method is chosen, it should be consistent from year to year and the amount should be reasonable.

Solution: Conduct actual inventory counts and reconcile with receiving records. Ensure that records are being kept by authorized personnel and substantiate changes to inventory records with counts, damage reports and receiving. Have the change and substantiation approved by management. Increase security measures for employees that have access to inventory.

Credit market conditions have slowed collection efforts down as customers experience increased difficulty in obtaining financing, which has led to higher than normal accounts receivable balances and longer DSOs. This may result in greater expense associated with collection efforts and increased bad debt expense for UEI.

Introduction: Roderick Breakfast Pvt Ltd is the owner of a successful food catering business. Roderick company to supply food for the trains for a period of three years, in January 2012, entered into an agreement with the Queensland government.

A CEO, or President should be the one who approves the payment, or have a separate manager look over the purchases before approving the payment. It doesn’t cause any problems that are noticeable at first, or ever. But he can easily order unnecessary things. For example, he could order one extra of one small items, and continuously do that and pocket the items. Or he could just simply over order, and possibly even under order on items. Having somebody just double check his order sheet and approve it would be the most ideal situation, and even running it by a President or CEO would be the absolute best situation so there are now flaws in the order history and no money goes missing, and the supplies, and all products bought are

If Symington feels it is necessary to take this, significant, amount of inventory from the company, it should be recorded as a debit to Symington’s Withdrawal account and a credit to the merchandise inventory account. By no means should this be recorded as a sale. There could be an unethical issue of stealing from the company because he is recording the transaction as a sale, which is not accurate. If the transaction is done as a sale, he is also double dipping on his share of the profits. What I mean by this is, he is currently taking inventory and by recording it as a sale, he is creating profit for the company that he will receive half of. It is not good business practice to use store merchandise for personal use. First, they will

Quickie Sales Corporation has just been given two conflicting estimates of sales for the upcoming quarter. Estimate I says that sales (in millions of dollars) will be normally distributed with µ=325 and σ=60. Estimate II says that sales will be normally distributed with µ=300 and σ=50. The Board of directors finds that each estimate appears to be equally believable a priori. In order to determine which estimate should be used for future predictions, the board of directors has decided to meet again at the end of the quarter to use updated sales information to make a statement about the credibility of each estimate.

The Company records indicate that they did not pay their suppliers on time. Also the accounts payable balance swelled by 260% from yester annum, however the sales managed to pull up only 76%. The company is jeopardizing its relationship with the suppliers, this can lead the suppliers to cut off the company and put it into bankruptcy against the Company if the company continues with late the payments.

Maintaining a strong cash flow in any business is often dependent on credit control and debt collection. Fail with one or the other, and the financial side of things can have serious problems. As critical as credit control and debt collection are, however, many organizations still end up with unpaid invoices and bad debts on hand.

In order to track such a large amount of inventory, Wal-Mart has employed the perpetual inventory system. This type of system consists of constantly recording the purchase and sale of products in the inventory and cost of goods sold accounts. In the year 2011, Wal-Mart's inventory totaled $36,437. In the following year, the company’s inventory

Kudler Fine Foods can also benefit from implementing a few general control procedures outside the system. For example, written procedures should be available and initialed by employees concerning how inventory is to be physically recorded and input into the automated system. Restrict the number of employees who have keys to the premises. Physically lock up and guard merchandise that is of high value or that can be easily converted into cash. The use of surveillance equipment or cameras can be used to monitor physical access to inventory and other company properties such as equipment. Provide procedures for identification of slow moving or damaged inventories are another internal control that could be incorporated outside the automated system.

Each store had a single-user Point-of-Sale (POS) system that was used to record sales. Each store received deliveries once a month. The sales and profit at each store was manually printed out from the POS software once a month by the supervisor. He/She held the physical copy of the report in the store for several days until the regional manager came to pick it up. After picking up all the physical reports from stores in his/her region,, the regional manager then travelled to the head office to enter all the sales data in a single user sales management system. The store supervisor also sent physical copies of the inventory counts to the senior managers of the warehouse and the senior manager of the accounting department. Each of these senior managers had access to single-user inventory management software and accounting software respectively. Sarah, a Regional VP for mall operations, is aware of some of the problems of the operations:

Often retailers will overtly protect expensive, top-shelf products, but this may actually result in the increased theft of less secure, bottom-shelf goods. This incidence is referred to as redistributive crime. In retail companies there is a loss prevention (LP) department that is specifically tasked with minimizing product loss, commonly referred to as inventory shrink. LP is implemented to reduce the preventable loss of a company’s assets by utilizing technologies that mitigate theft and fraud. Retailers continuously adapt their technologies to handle threats, but there are still numerous underlying issues, such as employee theft, fraud, and shoplifting. The increase in technology that consumers have access to threaten LP divisions, because they have made it easier for consumers to steal products, such as ink, and this drives LP to make technological progress in order to prevent further inventory shrinkage. However, there are budget constraints, and efficiency problems that arise with newer, more difficult LP technology. This paper aims to evaluate the redistributive crime that occurs by using a case study within a department of goods and analyzing the security measures available to combat this problem. While doing this I will pay particular attention to if the Electronic Article Surveillance (EAS) systems are paying for themselves and reducing a significant portion of theft.

Apart from the PFS staff members, there were others who gained access to the dashboard and had their own set of tools. Managers had their own “receivables dashboard and tools” (Souza & McCarty, 2007, pg. 69, para.4) and thus they were enabled to monitor adjustments, payments, revenue, and days for periods from the previous day and weeks to the 18 months of operation. It is important to calculate the average daily revenue and in the 30-day period. This tool enabled managers to do so and to assess their performance for the month to date. Thus, they would be in a position to estimate the likely results at the end of the month and assess all receivables and thus select any segment for quick analysis. The tool would be able to generate timely reports as demanded which includes the” age analysis. A/R stratification, discharged not final billed (DNFB) analysis” (Souza & McCarty, 2007, pg. 69, para.4). However, analysis of problem payers and credit balance analysis was made possible by this tool.