A small medical supply company sells cash only, the cash sale procedure involves several steps:- The sales clerkprepares apre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier. The cashier validates the original copy and gives it to the customer. The third copy of the sales invoice staysin the invoice book when the invoice book has been depleted all 3rdcopy of the invoices is filed in the sales office. “by invoice books”. At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takesthe cash tothe Bank and deposit it.The cashier retains a copy of the deposit slip the other copy is validated by the bank. The cashier then gives the accountant the sales summary, the 2nd copy of the invoices and the validated deposit slip. The accountant agrees the numbers prepare the journal entry Files the documents as follows Sales summaries by date Invoices by number Deposit slip by date Journal vouchers by number Required Prepare a document flowchart for the processe What weakness in the controls do you see? List them
A small medical supply company sells cash only, the cash sale procedure involves several steps:- The sales clerkprepares apre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier. The cashier validates the original copy and gives it to the customer. The third copy of the sales invoice staysin the invoice book when the invoice book has been depleted all 3rdcopy of the invoices is filed in the sales office. “by invoice books”. At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takesthe cash tothe Bank and deposit it.The cashier retains a copy of the deposit slip the other copy is validated by the bank. The cashier then gives the accountant the sales summary, the 2nd copy of the invoices and the validated deposit slip. The accountant agrees the numbers prepare the journal entry Files the documents as follows Sales summaries by date Invoices by number Deposit slip by date Journal vouchers by number Required Prepare a document flowchart for the processe What weakness in the controls do you see? List them
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A small medical supply company sells cash only, the cash sale procedure involves several steps:-
- The sales clerkprepares apre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier.
- The cashier validates the original copy and gives it to the customer.
- The third copy of the sales invoice staysin the invoice book when the invoice book has been depleted all 3rdcopy of the invoices is filed in the sales office. “by invoice books”.
- At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takesthe cash tothe Bank and deposit it.The cashier retains a copy of the deposit slip the other copy is validated by the bank.
- The cashier then gives the accountant the sales summary, the 2nd copy of the invoices and the validated deposit slip.
- The accountant agrees the numbers prepare the
journal entry
Files the documents as follows
Sales summaries by date
Invoices by number
Deposit slip by date
Journal vouchers by number
Required
- Prepare a document flowchart for the processe
- What weakness in the controls do you see? List them
- Suggest enhancements to the internal control
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