2. Solution to Tight Lines Fishing and Camping
a, b, and d, see pages that follow
c) Internal Control Weaknesses. The following tie to the numbered circles on the
flowchart.
2) Warehouse should not update the inventory subsidiary and General ledger
3) and 7) AR Clerk should not update the general ledger.
4) Billing and AR are combined.
5) Supervision is needed in the mailroom.
6) The cash receipts clerk has access to the assets (cash) and is responsible for
updating the general ledger.
Tight Lines Cash Receipts System DFD
Chapter 3 Page 83
Chapter 3 Page 84
Chapter 3 Page 85
Tight Lines Revised Sales System Flowchart
Chapter 3 Page 86
Tight Lines Revised Cash Receipts System Flowchart
Chapter 3 Page 87
3. Solution to TVR Classics. a) and b) See diagrams on the following pages.
c) Internal Control Weaknesses
Chapter 3 Page 88
TVR Revenue Cycle DFD
Chapter 3 Page 89
TVR Sales Order System
Chapter 3 Page 90
TVR Sales Order System Continued
Chapter 3 Page 91
TVR Cash Receipts Flowchart
Chapter 3 Page 92