Accounting

Posted: December 10th, 2013

1st Page:

Create a questionnaire checklist that can be used to evaluate controls for each of the four basic activities in the revenue cycle (sales order entry, shipping, billing, and cash collections).
Required
• a. For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be, “Are customer credit limits set and modified by a credit manager with no sales responsibility?”
• b. For each Yes/No question, write a brief explanation of why a “No” answer represents a control weakness.

2nd Page:
Use Table 13-2 to create a questionnaire checklist that can be used to evaluate controls for each of the basic activities in the expenditure cycle (ordering goods, receiving, approving supplier invoices, and cash disbursements).
Required
• a. For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be “Are supporting documents, such as purchase orders and receiving reports, marked ‘paid’ when a check is issued to the vendor?”
• b. For each Yes/No question, write a brief explanation of why a “No” answer represents a control weakness.