The Frist Corporation has the followinginternal controls related to inventory:1. Only authorized inventory warehousing personnel are allowed in inventory storageareas.2. All inventory products are stored in warehousing areas that are segregated fromother storage areas used to house equipment and supplies.3. All inventory held on consignment at Frist Corporation is stored in a separatearea of the warehouse.4. The inventory purchasing system only allows purchases from pre-approved vendors.5. The perpetual inventory system tracks the average number of days each inventoryproduct number has been in the warehouse.6. Microchips are embedded in each product and when inventory items are removedfrom the warehouse to shipping, radio-frequencies signal a deduction of inventoryto the perpetual inventory system.7. On a weekly basis, inventory accounting personnel take samples of inventoryproducts selected from the perpetual inventory system and verify that the inventoryis on-hand in the warehouse and that the quantities in the listing are correct.8. On a weekly basis, inventory accounting personnel select inventory items on handin the warehouse and verify that the item is included in the perpetual inventory listingat the correct amount.9. The perpetual inventory system subtotals the quantity of inventory in the systemand interfaces with the general ledger system on a daily basis to ensure quantitiesagree.10. The perpetual inventory system will not accept inventory additions without therecording on a valid receiving report.For each of the internal controls:a. Identify the related transaction-related audit objective(s) affected by the control.b. Describe risks the control is designed to mitigate.c. Design a test of control to determine if the control is operating effectively
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The Frist Corporation has the following
internal controls related to inventory:
1. Only authorized inventory warehousing personnel are allowed in inventory storage
areas.
2. All inventory products are stored in warehousing areas that are segregated from
other storage areas used to house equipment and supplies.
3. All inventory held on consignment at Frist Corporation is stored in a separate
area of the warehouse.
4. The inventory purchasing system only allows purchases from pre-approved vendors.
5. The perpetual inventory system tracks the average number of days each inventory
product number has been in the warehouse.
6. Microchips are embedded in each product and when inventory items are removed
from the warehouse to shipping, radio-frequencies signal a deduction of inventory
to the perpetual inventory system.
7. On a weekly basis, inventory accounting personnel take samples of inventory
products selected from the perpetual inventory system and verify that the inventory
is on-hand in the warehouse and that the quantities in the listing are correct.
8. On a weekly basis, inventory accounting personnel select inventory items on hand
in the warehouse and verify that the item is included in the perpetual inventory listing
at the correct amount.
9. The perpetual inventory system subtotals the quantity of inventory in the system
and interfaces with the general ledger system on a daily basis to ensure quantities
agree.
10. The perpetual inventory system will not accept inventory additions without the
recording on a valid receiving report.
For each of the internal controls:
a. Identify the related transaction-related audit objective(s) affected by the control.
b. Describe risks the control is designed to mitigate.
c. Design a test of control to determine if the control is operating effectively
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