Assignment 1- pg 1

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.

Please answer multichoice question in photo

.Internal Controls and RiskReview the following description of the purchasing and AP procedures for a company and answer the questions at the end.The purchasing agent receives an inventory status report on his computer terminal from the inventory control application, which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier.When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal.A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP…

PHYSICAL CONTROLSUsing the flowchart of a purchases system for this Problem, identify sixmajor physical control weaknesses in the system. Discuss theunmitigated risks associated with each weakness.

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For each of the following, give two examples of physical control that the client can use to protect the asset or the record:1. Small Tools Inventory2. Blank Checks or checkbooks3. Previous years transaction, accounting records and documents

For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both. Periodic inventory system, Perpetual inventory system, or Both? a. Normally used for relatively inexpensive goods. b. Keeps a running computerized record of merchandise inventory. c. Achieves better control over merchandise inventory. d. Requires a physical count of inventory to determine the quantities on hand. e. Uses bar codes to keep up-to-the-minute records of inventory.

4. One of the primary objectives of inventory controls is: Select one: A. Safeguarding inventory from damage or theft. B. Selling inventory at an affordable price C. Both A & B D. None of the above   5. When merchandise is shipped FOB (free on board) Destination: Select one: A. The buyer pays for the shipment. B. Title passes to buyer when merchandise is delivered. C. Title passes to buyer when merchandise is shipped. D. There is no charge for the shipment.   6. Which of the following statement is true regarding inventory costing? Select one: A. Under LIFO, the first units purchased are sold and ending inventory is made up of the most recent purchase B. The cost of ending inventory is the same Under the LIFO and FIFO methods. C. Both statements are true D. None of the above statements are true

Need Help on the following question. Question #1 You have been hired by the CEO of a soon-to-be-opened bookstore to develop procedures to help control inventory. List, describe, and defend four procedures you recommend be implemented to control inventory. As part of your response, be sure to describe any potential costs associated with these procedures.

The tests of controls for inventory records would include the following procedures.A. Existence.B. Rights.C. Completeness.D. Valuation.E. Presentation and disclosure.For each of the procedures, choose the letter of the correct PCAOB assertion(s). Only one letter per procedure should be used._______ 1. Trace a sample of sales invoices to perpetual inventory record entry of issue._______ 2. Select a sample of inventory item from perpetual records and vouch additions to receiving reports._______ 3. Select a sample of shipping documents and review the accounting summary of the quantities and prices._______ 4. Trace posting of sample of sales invoices to amounts in general ledger._______ 5. Review the appropriateness of standard costs to price inventory issues and cost of goods sold

Using the flowchart of a purchases system, identify six major control weaknesses in the system. Discuss and classify each weakness in accordance with SAS 78/COSO.

In a merchandising (retail) type businesses, how can you use the periodic inventory method and still use a computer to monitor with inventory?

Tracing the Inventory Count. You have been assigned to trace the results of the observation of Brightware China’s physical inventory count to its pricing and compilation. You note the following conditions.1. The last inventory tag documented by Mark Hulse, the auditor who observed the inventory, was 1732, but you notice a number of items with count ticket numbers higher than 1732. You contact the client’s controller, Marcia Vines, who tells you the client found a storage room full of a new product that Brightware had just produced and added it to the inventory. 2. The count tickets recorded by Hulse agree to the inventory list, but some of the other count tickets you select are substantially different from it. Vines tells you these are input errors and she will have them corrected. 3. Hulse described several boxes of goods as being dusty and even broken. They are included in the inventory at cost. Vines’s explanation is that china never “goes bad” and the goods themselves were not…