for all purchases from a specific vendor. 7.3. The following description represents the policies and procedures of a small charitable organization that grants subsidies to economically backward students in far-flung areas in China. The headquarters of the organization is in Hong Kong. Students in need of education subsidy approach the representatives of the organization. They write a statement of purpose elaborating on and justifying their need to the representatives, who then interview students. The representatives prepare a short report to the central committee of the organization for getting approval on the education subsidy. If it is approved, the sum is transferred to the selected student's bank account. Students are required to acknowledge the receipt of the educational subsidy by email. The committee members of this charitable organization work on a part-time basis. Usually, when the education subsidy is sent, it is monitored by a person called Thomas, who has business in China. The currency involved is Renminbi (RMB), which is not freely circulated outside China. Only limited amount of RMB is in circulation in Hong Kong, London, Singapore, and Taiwan. (This is called offshore RMB). After Thomas sends the money through his bank account in China to the students, the treasurer of the charitable organization reimburses him in Hong Kong dollars. The reimbursement is credited to his bank account in Hong Kong. The treasurer gets the reimbursement from the organization after some time. Charitable organizations are new in China, and are not allowed to open bank accounts there. REQUIRED Identify the internal control strengths and weaknesses of the subsidy and reimbursement process. You have to observe the restrictions of the limited flow of RMB. 7.4. The Gardner Company, a client of your firm, has come to
for all purchases from a specific vendor. 7.3. The following description represents the policies and procedures of a small charitable organization that grants subsidies to economically backward students in far-flung areas in China. The headquarters of the organization is in Hong Kong. Students in need of education subsidy approach the representatives of the organization. They write a statement of purpose elaborating on and justifying their need to the representatives, who then interview students. The representatives prepare a short report to the central committee of the organization for getting approval on the education subsidy. If it is approved, the sum is transferred to the selected student's bank account. Students are required to acknowledge the receipt of the educational subsidy by email. The committee members of this charitable organization work on a part-time basis. Usually, when the education subsidy is sent, it is monitored by a person called Thomas, who has business in China. The currency involved is Renminbi (RMB), which is not freely circulated outside China. Only limited amount of RMB is in circulation in Hong Kong, London, Singapore, and Taiwan. (This is called offshore RMB). After Thomas sends the money through his bank account in China to the students, the treasurer of the charitable organization reimburses him in Hong Kong dollars. The reimbursement is credited to his bank account in Hong Kong. The treasurer gets the reimbursement from the organization after some time. Charitable organizations are new in China, and are not allowed to open bank accounts there. REQUIRED Identify the internal control strengths and weaknesses of the subsidy and reimbursement process. You have to observe the restrictions of the limited flow of RMB. 7.4. The Gardner Company, a client of your firm, has come to
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Transcribed Image Text:for all purchases
from a specific vendor.
7.3. The following description represents the policies and procedures of a small charitable
organization that grants subsidies to economically backward students in far-flung areas
in China. The headquarters of the organization is in Hong Kong.
Students in need of education subsidy approach the representatives of the
organization. They write a statement of purpose elaborating on and justifying their
need to the representatives, who then interview students. The representatives prepare
a short report to the central committee of the organization for getting approval on the
education subsidy. If it is approved, the sum is transferred to the selected student's
bank account. Students are required to acknowledge the receipt of the educational
subsidy by email.
The committee members of this charitable organization work on a part-time basis.
Usually, when the education subsidy is sent, it is monitored by a person called Thomas,
who has business in China. The currency involved is Renminbi (RMB), which is not
freely circulated outside China. Only limited amount of RMB is in circulation in Hong
Kong, London, Singapore, and Taiwan. (This is called offshore RMB). After Thomas
sends the money through his bank account in China to the students, the treasurer of the
charitable organization reimburses him in Hong Kong dollars. The reimbursement is
credited to his bank account in Hong Kong. The treasurer gets the reimbursement from
the organization after some time. Charitable organizations are new in China, and are
not allowed to open bank accounts there.
REQUIRED
Identify the internal control strengths and weaknesses of the subsidy and reimbursement
process. You have to observe the restrictions of the limited flow of RMB.
7.4. The Gardner Company, a client of your firm, has come to
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON