Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 10, Problem 2DQ
Summary Introduction
To explain: If Person X agrees with the statement or not.
Introduction:
OE/S process:
It is known as the order entry/sales process. It describes the first four steps of the order-to-cash process.
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Students have asked these similar questions
Which of the following best represents a key control for ensuring sales are properlyauthorized when assessing control risks for sales?
A. The separation of duties between the billing department and the cash receipts approval department.
B. The use of an approved price list to determine unit selling price.
C. Copies of approved sales orders sent to shipping, billing, and accounting departments.
D. Sales orders are sent to the credit department for approval.
What is a walkthrough of a sales transaction? How can the walkthrough work complement the use of an internal control questionnaire?
Briefly explain the financial and/or managerial decisions that are made from creating a sales order and a payment receipt. why these documents are needed for internal decision making - what decisions are made from each document. Talk about the over-arching, management level decisions that are made based on the documents, not just day-to-day business activities that are driven by them.
Chapter 10 Solutions
Accounting Information Systems
Ch. 10 - Prob. 1RQCh. 10 - What are the major functions performed by the OE/S...Ch. 10 - With what internal and external entities does the...Ch. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Distinguish buy-side and sell-side systems.Ch. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - Prob. 14RQCh. 10 - Describe the impact that entity-level controls...Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - An enterprise system supports a business process...Ch. 10 - Among the three functional entities (marketing,...Ch. 10 - The chapter presented a brief example of how the...Ch. 10 - Prob. 3SPCh. 10 - Prob. 4SPCh. 10 - Prob. 5SPCh. 10 - Prob. 6SPCh. 10 - Prob. 3PCh. 10 - Prob. 6P
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- Using a case company of your choice and with relevant examples, examine its financial management function and demonstrate the essence of sound financial management to supply chain/procurement managerarrow_forwardDetermine whether the following items are objectives in the following areas: Financial, Internal Process, Customer, or Learning and Growth Inventory turnover *a. Financialb. Internal Processc. Customerd. Learning and GrowthNumber of customer complaints resolved by the after-sales service department *a. Financialb. Internal Processc. Customerd. Learning and Growtharrow_forwardWhich of the following would not be a control in a sales system? a. Agreeing details from the sales order when preparing the goods to be dispatched to the customer b. Batch totals required when inputting sales invoices onto the system c. Approval of credit limits for new customers from a manager before being allowed credit d. The sales clerk alone deciding whether to give discounts or not to customers without approvalarrow_forward
- A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? Group of answer choices 1.The person in accounts payable should generate the purchase order. 2.The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. 3.No changes would be made since the person paying the bills is different from the person ordering the inventory. 4.The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people.arrow_forwardTo carry out their analysis, planning, implementation, and control responsibilities, marketing managers need a marketing information system (MIS) to assess information needs, develop the needed information, and distribute it in a timely manner. Assume that you are a Marketing Manager of Diners and your company wants you to deploy an efficient Marketing information system. Explain how marketing intelligence will help Diners in collecting information?arrow_forwardwhich, if any of the following situations represents improper segregation of functions? Explain your answer. a. the billing department prepares the customers' invoices and records the sale in the sales journal b. The mailroom clerk opens a cash receipt envelopes from customers and also prepared the remittance risk c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return.arrow_forward
- Explain the importance of proper credit approval for sales only typed solutionarrow_forwardClearly identify and explain three internal controls that an organisation can implement within the sales and collection process of an organisation. Your answer should discuss how the identified items are internal controls from the latter contextarrow_forwarddemonstrate the essence of sound financial management to supply chain/procurement managersarrow_forward
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