Such weaknesses are; Control Environment - The tone from the management created a major weakness. A person performing both of these duties could conceal theft of cash by creating a credit memo equal to the amount stolen.
The system will record the sale and purchase transactions which were recorded by the bookkeeper and sales representative. There was no sense of control in place since management in an effort to cut expense did not invest in proper control systems.
Develop one or more control policies or procedures to alleviate the control weaknesses you identified in responding to question 2. Information processing controls - Woody as a sales person had full access to the accounting system.
Goodners Huntington sale office had no real internal control objectives. Sales entry should be authorized, valid, complete and accurately -The accounting system should be restricted for only authorized person The transactions should be recorded in timely basis -The transactions should be recorded only from source of documents ex.
In essence woody had authorization and custody privileges. Besides Woody Robinson, what other parties were at least partially responsible for the inventory losses Goodner suffered? Top-level reviews Annual review by the internal audit is used in order to inspire the operation and compare the performance with a plan of the business, so that the company can find out that there are any problems or fraud or not.
In this case study, there are several departments of the company that is directly responsible. Woody worked as a sales representative for the Goodner sales office in Huntington.
So the company can record all transaction from each sale outlet. The sense of the environment is that everything was based on trust. Business activities are performed efficiently and effectively Internal Control Procedures: At my current job with a federal agency it is mandatory for us to complete yearly classes Such access should have only been given to the bookkeeper and the Sales manager.
So, the sales manager himself had no interest in the controls of inventory. Reliable financial reporting - the objective here is ensure that financial records, mainly accounts payable and accounts receivable, are correct and reliable ensuring that money is not being embezzled or posted to incorrect accounts.
Physical count made periodically or surprised check -The employees responsible for inventory custody should be held accountable for any shortage.
Inventory observation just only 1 time per year 5. Took only year-end physical inventory to bring its perpetual inventory records into agreement with the amount of inventory actually on hand.
To protect the theft of cash Segregation of duties: One policy I would implement is to have every employee, including owners, undergo a yearly internal control class. A person performing both of these duties could commit the special type of embezzlement called lapping -Handing cash or checks and authorizing credit memos.
Adequate Document and Records The computerized accounting system is used at each Goodner sales outlet. Fail to review the customer complaint report by sales managers, even though this is one of the important sources to get the fact and give the sense of the skeptical signs.Rose Samuel Instructor Angela Sneed ACC April 10, Case Goodner Brot hers Inc.
In this case I will identify five key internal c. Aug 09, · Virginia Goodner Lewis, 73, of Hixson, Tennessee, passed away on Wednesday, January 10, surrounded by her children. Virginia was born on September 3, to the late Thurman and Iva Goodner. Big Brother Case Study The core issue on the hands of the Big brother agency is that the volunteers are scarce and the total matches between big and little brothers have dropped by 40% over the past 2 years.
Goodner Brothers, Inc. The Goodner Brothers, Inc. audit case is based off the story of two men who have been friends since their.
Cases Goodner Brothers, Inc. Goodners Huntington sale office had no real internal control objectives. As stated in the case the controls were almost nonexistent and management was lax as it relates to controls. View Homework Help - Case Goodner Brothers, Inc from ACCOUNTING at University of La Verne.
SECTION THREE C~: t INTERNAL CONTROL iSSUES 35 ' board and chief executive officer (CEO), while.
Rose Samuel Instructor Angela Sneed ACC April 10, Case Goodner Brothers billsimas.com this case I will identify five key internal controls 5/5(2).Download