t has five workers, a driver who transfers inventories to each location, freight assistant, store keeper and two marketing assistants who assist in organizing promotions in area. You are the audit manager who will be auditing BIncang Tiles Idea. Required: Discuss audit procedure to audit the invento
Q: Assume you're the assistant controller at a bookstore that's run by an independent bookseller.…
A: As an assistant controller it should be recognized which inventory control technique should be used.…
Q: The following describes the expenditure cycle for a hypothetical company. The company has a…
A: EC termed as Expenditure cycle which involves the business activities set that is recurring in…
Q: What error conditions need to be addressed? (What is an error condition?) For each, what do you…
A: Auditor is the independent professional who is CPA certified and has immense knowledge about the…
Q: Everyday Supplies Pty Ltd is a single-store retailer that sells a variety of tools, garden supplies,…
A: Definition: Internal control: Internal control is a process which ensures continuous reliability of…
Q: World View Outfitters operates a large outdoor clothing and equipment store with three main product…
A: What is meant by activity-based costing? This method is used to allocate the overhead or indirect…
Q: The following is an excerpt from a conversation between the store manager of Wholesome Grocery…
A: Internal Control: The internal control refers to the plan of a company. Implementation of effective…
Q: Your firm is the auditor of Trent Textiles, and you are planning your audit work on the inventory…
A: Inventory:- Inventory includes the goods that are available for sale and the raw material which is…
Q: Jackie is designing the audit program for cash for her client, Dexican Services Ltd (Dexican).…
A: Audit planning refers to the process of planning out the whole process of auditing which is…
Q: DURAPLAST’s sales department consists of 17 full-time and part-time employees. They receive orders…
A: Data Flow Diagram: A data flow diagram can be defined as a systematic method to represent the data…
Q: One of your clients who is engaged in the minimarket has a variety of supplies (heterogeneous…
A: The main reason why auditors checking physical inventory of the client is to make sure the…
Q: Your firm is the auditor of Trent Textiles, and you are planning your audit work on the inventory…
A: Inventory is a term used for the goods or products which are manufactured by the business. It also…
Q: Identify which department has stewardship (having the job of supervising or taking care of) over the…
A: Stewardship: A job, responsibility, or authority to take care or supervise something in such a…
Q: You are the warehouse manager for a multi-location business specializing in old style vinyl records.…
A: Solution Working note warehouse west store sales 18920.00 43860.00 cost of…
Q: You are auditing the valuation assertions over the inventories of your client, Atom Corporation, a…
A: Inventory write down: Inventory write-down is to ensure reflecting a loss that arises due to the…
Q: driver who transfers inventories to each location, freight assistant, store keeper and two marketing…
A: The term Business refers to an exchange of goods and services between the buyer and the seller on a…
Q: Fraud in Purchasing. Consider the following scenario:Adam worked for the local hardware store as an…
A: Internal control: Internal control is a mechanism or procedure to ensure financial reporting is…
Q: The following describes the expenditure cycle for a hypothetical company.The company has a…
A: Transaction process system: Transaction process system can be defined as a system designed to…
Q: K Cannon, Inc., is a manufacturer of portable CD players. The company purchases raw materials such…
A: REA Model: REA model establishes the relation between resource, event and agents. REA model serves…
Q: A computer-based information system is expected to have general IT controls in place. Discuss the…
A: General IT controls are policies and procedures that relate to many applications and support the…
Q: Wares king supplies custom-fitted curtains and blinds to retail customers. It has recently expanded…
A:
Q: MOUNTAIN ADVENTURE: WHITE WATER AND CAMPING SUPPLIES (NETWORKED COMPUTER SYSTEM AND MANUAL…
A: Data Flow Diagram: A data flow diagram can be defined as a systematic method to represent the data…
Q: Saurez Company, your client, manufactures paint. The company’s president, Maria Saurez, has decided…
A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…
Q: A vendor specializing in outdoor gear offers customers three ways to place orders for home delivery.…
A: Given Information: Of the total, one half i.e., 1/2 orders are made online. One quarter i.e., 1/4…
Q: Josie is a sales representative for Talk2Me, a communications retailer based in Fort Smith,…
A: Please find the answer to the above questions below:
Q: A CIA’s client, The Outsider, Inc., is a medium-sized manufacturer of products for the leisure time…
A: The question is based on the concept of Auditing
Q: ABC Limited operates its business as one of the leading clothing wholesalers in the region and sells…
A: Internal Control The purpose of implementing the internal control to the company to identify and…
Q: i) Explain three strengths identified within Unilever ltd purchasing transaction cycle based on the…
A: An organization must have good internal controls in place in order to reduce the risk of fraud.
Q: g tiles, mosaic and bathroom floor tile ideas in Ipoh, Kampar and Penang. Sales mainly come from…
A: The term Business refers to an exchange of goods and services between the buyer and the seller on…
Q: Wares king supplies custom-fitted curtains and blinds to retail customers. It has recently expanded…
A: Auditing: Auditing is an independent examination of financial statements. The set of financial…
Q: Boston Retail Company (clothing chain) is working with several suppliers of new and second-hand…
A: Costs incurred by the company at each hierarchical level are as follows: Supplier level = $100Order…
Q: The audit team is preparing to audit a new client in the toy retail industry. The client imports…
A: Understanding of New Client's Business: To understanding the new client we have to understand the…
Q: Consumers Union is a nonprofit organization that providesinformation and counsel on consumer goods…
A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.
Q: Wares king supplies custom-fitted curtains and blinds to retail customers. It has recently expanded…
A: Auditing: Auditing refers to the procedure for providing independent report over the presentation of…
Q: Marie Janes encounters the following situations in doing the auditof a large auto dealership. Janes…
A: The American Institute of Certified Public Accountants (AICPA) Conceptual Framework refers to the…
Q: A CPA’s client, Boos & Baumkirchner, Inc., is a medium-sizemanufacturer of products for the…
A: Audit: Audit is the process of verification of the compliance of the financial statements. It…
Q: Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly…
A: A purchase order is a legally binding document created by a buyer and presented to a seller.
Q: John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers.…
A:
Q: John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers.…
A: Activity based costing is the costing method in which overhead costs are allocated on the basis of…
Q: Million Dollar Mills is a textile manufacturing firm located in the southern United States. The…
A: The criteria for evaluating a managers performance varies among organisations,but generally…
Q: INTERNAL CONTROL- Revenue Cycle Iris Plant owns and operates three floral shops in Magnolia, Texas.…
A: Internal Control: Internal control can be defined as the procedures, rules and mechanisms that are…
Q: Wholesome and Happy Foods is a farm-to-family grocery store located in the Pacific Northwest. The…
A: Internal Control: The internal control refers to the plan of a company. Implementation of effective…
Q: Donna is a manager of an online clothing store. She has five employees who work remotely in their…
A: The number of subordinates a superior may effectively manage is referred to as the span of…
Q: Your Audit team is preparing to audit a new client in the electronic retail industry. The client…
A: The management of the company is the main responsible for preparing the financial statements which…
Bincang Tiles Idea is a retailer that sells flooring tiles, mosaic and bathroom floor tile ideas in Ipoh, Kampar and Penang. Sales mainly come from flooring tiles. Each outlet has five workers, a driver who transfers inventories to each location, freight assistant, store keeper and two marketing assistants who assist in organizing promotions in area.
You are the audit manager who will be auditing BIncang Tiles Idea.
Required:
Discuss
Step by step
Solved in 2 steps
- Bincang Tiles Idea is a retailer that sells flooring tiles, mosaic and bathroom floor tile ideas in Ipoh, Kampar and Penang. Sales mainly come from flooring tiles. Each outlet has five workers, a driver who transfers inventories to each location, freight assistant, store keeper and two marketing assistants who assist in organizing promotions in area. Required: You are the audit manager who will be auditing BIncang Tiles Idea. Describe a suitable audit sampling and discuss audit procedure to audit the inventories and sales.Bincang Tiles Idea is a retailer that sells flooring tiles, mosaic and bathroom floor tile ideas in Ipoh, Kampar and Penang. Sales mainly come from flooring tiles. Each outlet has five workers, a driver who transfers inventories to each location, freight assistant, store keeper and two marketing assistants who assist in organizing promotions in area. You are the audit manager who will be auditing BIncang Tiles Idea. Required: Describe a suitable audit sampling.You are a member of the recently formed internal audit department of Hauz of Spinach. The company manufactures tinned vegetables which are supplied to hypermarkets. The management is concerned about the effectiveness of their sales and despatch system and have asked internal audit to document and review the system. Sales orders are mainly placed through Hauz of Spinach’s website but some are made via telephone. Online orders are automatically checked against inventory records for availability; telephone orders, however, are checked manually by order clerks after the call. A follow-up call is usually made to customers if there is insufficient inventory. When taking telephone orders, clerks note down the details on plain paper and afterwards they complete a three-part pre-printed order form. These order forms are NOT sequentially numbered and are sent manually to both despatch and the accounts department. As the company is expanding, customers are able to place online orders which will…
- You have been assigned to the audit of Carter Brandon Co (CBC), and you are drafting the audit for payables and accruals for the year ended 31 December 20x7. The company operates from a site in West Wendon. All raw materials are received in the stores and all deliveries are checked to the delivery note and purchase order. The stores supervisor raises a goods received note and is also responsible for raising credit requests if there are any problems with the raw materials delivered.When the purchase ledger department staff receive the purchase invoices, they match them to the relevant goods received notes and purchase orders, and post them to the computerised purchase ledger. Suppliers are paid on the last day of each month. Other payables and accruals consist of tax, wages and other statutory deductions, accruals and time- apportioned expenses such as electricity and telephone.a. Assess the audit work you will carry out to compare suppliers' statements with balances recorded on the…You are a member of the recently formed internal audit department of Hauz of Spinach. The companymanufactures tinned vegetables which are supplied to hypermarkets. The management is concernedabout the effectiveness of their sales and despatch system and have asked internal audit to documentand review the system. Sales orders are mainly placed through Hauz of Spinach’s website but some are made via telephone.Online orders are automatically checked against inventory records for availability; telephone orders,however, are checked manually by order clerks after the call. A follow-up call is usually made tocustomers if there is insufficient inventory. When taking telephone orders, clerks note down thedetails on plain paper and afterwards they complete a three-part pre-printed order form. Theseorder forms are NOT sequentially numbered and are sent manually to both despatch and theaccounts department. As the company is expanding, customers are able to place online orders which will exceed…The Northwest regional manager of Logan Outdoor Equipment Company has conducted a study to determine how her store managers are allocating their time. A study was undertaken over three weeks that collected the following data related to the percentage of time each store manager spent on the tasks of attending required meetings, preparing business reports, customer interaction, and being idle. The results of the data collection appear in the following table: a. Create a stacked-bar chart with locations along the vertical axis. Reformat the bar chart to best display these data by adding axis labels, a chart title, and so on. b. Create a clustered-bar chart with locations along the vertical axis and clusters of tasks. Reformat the bar chart to best display these data by adding axis labels, a chart title, and the like. c. Create multiple bar charts in which each location becomes a single bar chart showing the percentage of time spent on tasks. Reformat the bar charts to best display these data by adding axis labels, a chart title, and so forth. d. Which form of bar chart (stacked, clustered, or multiple) is preferable for these data? Why? e. What can we infer about the differences among how store managers are allocating their time at the different locations?
- The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable clerk, reporting the receipt of inventory. Accounts payable clerk, compares the warehouse memo to the supplier’s invoice. Accounts payable clerk, prepares a check which the treasurer signature. What internal control improvements needed on this set up? Discribe at least 5 or more.Consider the following short case as you respond to the question:SPC Corporation sells computer security software. They maintain their AIS using general ledger software; data files are backed up twice a day. Sales staff can access the customer database, inventory files and general ledger, as well as sales-related documents such as invoices and sales orders. Newly hired sales staff members at SPC receive the company procedures manual which explains the process used to complete the steps in the sales/collection process. To minimize costs, SPC designates up to five sales staff members each month who can do credit checks for all new customers in addition to processing sales. SPC bills its clients monthly and uses the balance forward method of accounting for receivables; all cash receipts from clients are processed using a lockbox procedure. The lockbox firm's fee is 3% of all collections. SPC's accounting department estimates bad debts at the end of each fiscal year; they are normally…Everyday Supplies Pty Ltd is a single-store retailer that sells a variety of tools, garden supplies, timber, small appliances, and electrical fixtures to the public, although about half of Everyday Supplies’ sales are to construction contractors on account.Retail customers pay for merchandise by cash or credit card at cash registers when merchandise is purchased. A contractor may purchase merchandise on account, if approved by the credit manager based only on the manager’s familiarity with the contractor’s reputation. After credit is approved, the sales associate files a prenumbered charge form with the accounts receivable supervisor to set up the receivable.The accounts receivable supervisor independently verifies the pricing and other details on the charge form by reference to a management - authorised price list, corrects any errors, prepares the invoice, and supervises a part-time employee who mails the invoice to the contractor. The accounts receivable supervisor electronically…
- ABC Limited operates its business as one of the leading clothing wholesalers in the region and sells its clothes to retailers. You recently joined this wholesaler for a short project where your primary responsibility is to analyse their transaction process system critically. For this purpose, you are provided with the description of various business activities of the following four departments (also see Figure 1.1 on the next page): (1) Sales Department, (2) Accounting Department, (3) Warehouse/Shipping, and (4) Mailroom. The sales department of ABC Limited has a part-time sales clerk, Miss Emma, who works on the commissions. Miss Emma encourages its customers to forward the orders in any form, including mail, e-mail or fax (recall our discussion on the revenue cycle during the interactive tutorial for week 4). Miss Emma approves the credit sales and calculates commission and discounts. Then, she records the sales in the sales journal from the PC in the sales department. After…Martin Shoes, Inc. manufactures and distributes orthopedic footwear. To sell its products, the marketing department requires sales personnel to call on the shoe retailers within their assigned geographic territories. Each salesperson has a laptop computer, which he or she uses to record sales orders during the day and to send these sales orders to Martin’s network nightly for updating the company’s sales order file. Each day, warehouse personnel review the current sales orders in its file, and where possible, pick the goods and ready them for shipment. (Martin ships goods via common carrier, and shipping terms are generally FOB from the shipping point.) When the shipping department completes a shipment, it also notifies the billing department, which then prepares an invoice for the customer. Payment terms vary by customer, but most are net 30. When the billing department receives a payment, the billing clerk credits the customer’s account and records the cash received. Requirements 1.…You are internal auditor inspecting process used by sales representatives of a company selling office supplies to small companies. Before a new customer’s line of credit established, the sales rep must complete an online form that contains questions for which they must gather information from the new customer. The company asks that the sales reps gather this data (there is much more required, these are just the first few fields) as the first part of the data gathered: Company name, address, corporate form (sole proprietor, LLC, LLP, or S Corp), line of credit amount requested, authorized purchaser name and address, shipping address. For each of these fields, What error conditions need to be addressed? (What is an error condition?) For each, what do you recommend as a test/verification method? (You may find some that you believe don’t need a verification process)