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Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
ISBN: 9781337552127

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BuyFindarrow_forward

Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
ISBN: 9781337552127
Textbook Problem

Personnel at C&P Company must perform the following functions:

  1. 1. Receive checks and remittance advice from customers.
  2. 2. Approve vendor invoices for payment and prepare checks.
  3. 3. Approve credit memoranda for customer sales returns.
  4. 4. Record collections on account from customers.
  5. 5. Record customer sales returns.
  6. 6. Make daily deposits of cash receipts.
  7. 7. Sign payment checks and mail them to vendors.
  8. 8. Record cash payments to vendors.
  9. 9. Record purchase returns and allowances.
  10. 10. Reconcile the bank account each month.

C&P has three employees, Grant, Jordyn, and James, any of whom is capable of performing any of the 10 functions.

Explain how you would divide the 10 functions among the three employees to optimize the segregation of duties control plan discussed in the chapter. Consider only control aspects when allocating the duties. In other words, ignore factors such as the workload of each employee, except that any one employee should be assigned a minimum of two functions. Your solution should also include a one-paragraph explanation of how your design accomplishes the control goals that segregation of duties is supposed to achieve.

Summary Introduction

To determine: The person who is responsible for the given option.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Explanation

Given functions:

Company C has three employees who are Person G, Person JO, and Person JA:

Determine the person who is responsible for each function given:

Person G is responsible for receiving checks and remittance advice from customers, mailing the signed payment checks to vendors, and making daily deposits of receipts. He can perform the job of the cashier...

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