Nilesh Charan
10/27/2018
(8.1) Flow of goods (adapted from NIVRA)
Provide a description (in just a few sentences) of the differences with respect to the
internal controls between the following business. Indicate the causes of these differences,
the type of firm (typology of organizations), the differences in measurements points, and
the differences in procedures.
A wholesaler has a liability and must pay vendors after goods are received. The wholesaler
can pay in advance for goods. Vendors will often encourage a prepayment through a
discount. The opposite can happen if there is a delay in payment. If the payment window
extends beyond 30 days, then a fee can will normally be assessed because if the deadline
extension.
Vegetable suppliers are liable for payments to farmers that grow products on the agreed
upon date. Farmers that have contracts get paid without regard to the vegetable supplier
has been able to sell their product. The farmers only obligation is to get the product to the
supplier on the agreed upon date. Vendors on the other hand must pay the supplier within
eight days after the auction. Failure to do so and they are held liable of breaching
agreement.
The employment agency has a responsibility to pay for its members and workers. Workers
perform tasks for the agency according to labor and employment regulations and are
compensated by the employment agency. The agency is also responsible for paying all its
members benefits like taxes, social security premiums among other deductions that it
makes from their salaries and wages. If there are payments that are made in excess of what
is due the employment agency has the right to receive interests them.