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Chapter 4 page 130
3. SOLUTION TO TVR CLASSICS
a), b), See diagrams on the following pages.
c) Internal Control Weaknesses
Purchases Procedures
1) The inventory clerk in the warehouse department has asset
2) The receiving clerk prepares the receiving report from the
packing slip information. The receiving department clerk should
4) Accounts Payable does not verify that the good have been
Cash Disbursements Procedures
5) The company may be paying for items not received. The cash
Chapter 4 page 131
Ledger.
Chapter 4 page 132
Chapter 4 page 133
Chapter 4 page 134
d.
Revised System
Student responses will vary for this part of the assignment. Their solutions
4. SOLUTION TO DISCOUNT TOOLS INC.
a), b) see the following pages
c) Internal Control Weaknesses
1) Purchasing clerk should not authorize inventory purchases.
Chapter 4 page 136
Chapter 4 page 137
Chapter 4 page 138
e) Revised System
Student responses will vary for this part of the assignment. Their solutions
5. SOLUTION TO ABE PLUMBING, INC
a), b) see the following pages
c) Internal Control Weaknesses
Chapter 4 page 139
Chapter 4 page 140
d) Flowchart of revised system
