Chapter 12, Problem 2P

a.

To determine

Describe an internal control procedure that the company can adopt to prevent their workers stealing inventory at the docks.

b.

To determine

Describe an internal control procedure that the company can adopt to prevent their employee posting sales amount to the wrong customer account.

c.

To determine

Describe an internal control procedure that the company can adopt to prevent their employee making credit sales to a customer who is already four months behind in making payments.

d.

To determine

Describe an internal control procedure that the company can adopt to prevent their employee from authorizing a credit memo for sales return where the goods were not returned for the same.

e.

To determine

Describe an internal control procedure that the company can adopt to prevent their employee from writing off customer accounts receivable balance as uncollectable to conceal a theft.

f.

To determine

Describe an internal control procedure that the company can adopt to prevent the customers being billed but the quantity of products shipped is less than the ordered inventory.

g.

To determine

Describe an internal control procedure that the company can adopt to prevent their mailroom clerk from stealing checks and endorsing them for personal gains.

h.

To determine

Describe an internal control procedure that the company can adopt to prevent the cashier from stealing funds of the business.

i.

To determine

Describe an internal control procedure that the company can adopt to prevent the waiter from stealing cash by destroying the customer sales tickets.

j.

To determine

Describe an internal control procedure that the company can adopt to prevent the issue of the customers not being billed for their transaction.

k.

To determine

Describe an internal control procedure that the company can adopt to prevent the business loss due to stock outs.

l.

To determine

Describe an internal control procedure that the company can adopt to prevent unauthorized disclosure of known customers.

m.

To determine

Describe an internal control procedure that the company can adopt to prevent their database from being destroyed due to uncontrollable events.

n.

To determine

Describe an internal control procedure that the company can adopt to maintain the business operations even in power failure.

o.

To determine

Describe an internal control procedure that the company can protect the credit card information of their customers over the internet.

p.

To determine

Describe an internal control procedure that the company can implement to follow a systematic pricing data and authorizing discounts.

q.

To determine

Describe an internal control procedure that the company can implement to restrict unauthorized access to their customer account information.

r.

To determine

Describe an internal control procedure that the company can implement to ensure the effectiveness of their backup and storage strategies.