Internal control over the revenue cycle White Floyd, Inc, a retail store, is concerned about the lack of control procedures over the recording of sales transactions. The company is concerned that the transactions might not be recorded accurately and valued properly in accordance with GAAP. Recommend control procedures to help ensure that transactions are recorded accurately and valued properly
Control procedures that should be implemented to ensure that sales transactions are properly recorded are:
? Sales orders are filled by authorized personnel following an authorized price catalog.
? Sales prices are to be maintained on the computer and access to the computer file is restricted to those authorized to change it.
? Internal audit department periodically should perform tests of sales invoices to see if the terms agree with authorized price lists.
? Executive approval should be required of all large, unusual, or complex sales transactions.
? Oral or written verification of prices with customers should be required for all nonstandard sales.
? Products shipped and billed must be checked against an existing product list.
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A manufacturing company's budgeted income statement includes the following data
Data extracted from budgeted income statement Mar Apr May Jun Sales revenue $130,000 $80,000 $130,000 $120,000 Commission expense (15% of sales) 19,500 12,000 19,500 18,000 Salaries expense 33,000 33,000 33,000 33,000 Miscellaneous expense-5% of sales 6,500 4,000 6,500 6,000 Rent expense 3,600 3,600 3,600 3,600 Utilities expense 2,300 2,300 2,300 2,300 Insurance expense 2,600 2,600 2,600 2,600 Depreciation expense 4,200 4,200 4,200 4,200 The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the same month, and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1. Calculate total budgeted cash payments for selling and administrative expenses for the month of April. A) $52,000 B) $60,500 C) $57,900 D) $64,700
Which statement is not related to statistics associated with cross-tabulation?
A) The statistical significance of the observed association is commonly measured by the chi-square statistic. B) The t test could be conducted on the mean of one sample or two samples of observations. C) Generally, the strength of association is of interest only if the association is statistically significant. D) The strength of association can be measured by the phi correlation coefficient, the contingency coefficient, Cramer's V, and the lambda coefficient.