Identification of Tests of Controls

Powerful Essays
Southeast Shoe Distributor, Inc.:
Identification of Tests of Controls for the Revenue Cycle
(Sales and Cash Receipts)

LEARNING OBJECTIVES
After completing and discussing this assignment you should be able to • Recognize common documents and records used to record transactions in the revenue cycle • Recognize common control activities used to process transactions in the revenue cycle • Identify client control activities that reduce the likelihood of material misstatements • Link client control activities to management assertions • Identify tests of controls for each control activity identified

INTRODUCTION Southeast Shoe Distributor (SSD) is a closely-owned business that was founded 10 years ago by Stewart Green and Paul Williams. SSD is a distributor that purchases and sells men's, women's, and children's shoes to retail shoe stores located in small to midsize communities. The company's basic strategy is to obtain a broad selection of designer-label and name-brand merchandise at low prices and resell the merchandise to small, one-location, retail stores that have difficulty obtaining reasonable quantities of designer and name-brand merchandise. The company is able to keep the cost of merchandise low by (1) selectively purchasing large blocks of production overruns, overorders, mid- and late-season deliveries, and previous season's stock from manufacturers and other retailers at significant discounts, (2) sourcing in-season name-brand and branded designer merchandise directly from factories in Brazil, Italy, and Spain, and (3) negotiating favorable prices with manufacturers by ordering merchandise during off-peak production periods and taking delivery at one central warehouse. During the year, the company purchased merchandise from more than 50 domestic and international vendors, independent resellers, manufacturers, and other retailers that frequently have excess inventory. Designer and name-brand footwear sold by

You May Also Find These Documents Helpful

  • Better Essays

    catalase-positive organisms that are mixed into hydrogen peroxide will cause bubbling (catalase-negative organisms will not). This test is good for distinguishing between Gram-positive cocci in chains (catalase negative) versus Gram-positive cocci in clusters (catalase positive). The coagulase test is used to differentiate Staphylococcus aureus from coagulase-negative staphylococci. The test uses rabbit plasma that has been inoculated with a staphylococcal colony. The tube is then incubated at 37 degrees Celsius…

    • 570 Words
    • 3 Pages
    Better Essays
  • Better Essays

    found within living cells. These biological molecules help the body execute precise important tasks. There are four types of macromolecules: carbohydrates, lipids, proteins and nucleic acids. (Karp, 2010) This specific experiment showcased the identification of different macromolecules using three different testing methods. Carbohydrates, sugar molecules, are known as “fast fuel” in the body, and they contain base elements of carbon, oxygen and hydrogen. (Lea, 2002) The simplest carbohydrate molecule…

    • 2144 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Identification of Unknown Carbohydrates using various biochemical tests Date of experiment: 11/10/2012 Name of Student: Vicki Marshall Introduction A series of biochemical tests was carried out to identify unknown carbohydrates. There were six carbohydrates that needed to be identified; they have been randomly labelled A-F. The carbohydrates are glucose, fructose, maltose, lactose, sucrose and starch. There was six tests that were carried out to help identify them, these were: Iodine Test…

    • 1059 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Eyewitness Identification

    • 1751 Words
    • 8 Pages

    The fallibility of Eyewitness Identification and Testimony INTRODUCTION: Eyewitness identification and testimonies are relied on heavily by the criminal justice system to help with investigation and prosecution of crimes and criminals. Due to the increase in the use of eyewitness identification psychologist began studying the results more efficiently to gain a clearer understanding of the risks it holds.. A scientific literature on this specific topic was created and highlighted the issues that…

    • 1751 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Mineral Identification

    • 739 Words
    • 3 Pages

    its physical properties are relatively constant and may be used for the mineral’s identification” (Gardiner and Wilcox 107). There are many intriguing physical properties to mineral identification. Visible properties include color, luster, streak, crystal form, cleavage. The tactile property can be measured using Mohs scale, which measures hardness of minerals compared to common objects. Additional tests can be used; including acid, magnetism, smell, taste, and specific gravity.…

    • 739 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Identification of Metalic

    • 269 Words
    • 2 Pages

    Identification of Metallic Ions Peter Jeschofnig, Ph.D. Version 42-0160-00-01 Kellie Long Purpose: To observe the different flames of alkali and alkaline metals. Procedure: Place a little bit of each element into the well plate. Then you soak a tip of a cotton swab in each solution. Then you place the cotton swab over the Bunsen burner until the flame changes color. observations The color of the flame is expected to be as follows: Metallic ion Flame color…

    • 269 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    M10EFA: Auditing and Assurance Seminar 4: Tests of Control and Audit Sampling Tests of Controls Game Solutions is a computer games company which has its Head Office located in Glasgow, where all administrative processes are conducted. However, all other functions are sited at four other locations in the UK in order to ensure optimum cost efficiency of the research and production functions in terms of staff, facilities, travel among others. All locations are networked together with a server placed…

    • 578 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    determine whether the clerk is careless in performing her duties or he/she purposely carries out lapping activities. 5. To make sure clerk is not lapping accounts. 6. To test the accuracy of the year-end reconciliation of the company’s bank account performed by the controller. 7. Given the lack of internal controls, the auditor needs to verify the clerk made daily deposits with the correct…

    • 347 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Fingerprint Identification

    • 4430 Words
    • 18 Pages

    of computer systems and to secure network-based transactions, demand is increasing for improved user authentication procedures to establish the identity of an actual user and to bar access to a terminal to anyone who is unauthorized. Personal identification using biometrics, i.e., a person’s physical or behavioral characteristics has come to attract increased attention as a possible solution to this issue and one that might offer reliable systems at a reasonable cost. While traditionally this technology…

    • 4430 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Mineral Identification

    • 546 Words
    • 3 Pages

    C Mineral Identification Worksheet Open the simulation and print this worksheet and the Mineral Identification Job Aid. Then do the following: 1. Conduct all tests on the minerals in the virtual lab. Minerals in the virtual lab are numbered 1–7. Keep track of which mineral you are working with as you record your observations. 2. Record your observations of each test in Part 1 of this worksheet. Help: Refer to the job aids in the upper right corner of the test screens to help…

    • 546 Words
    • 3 Pages
    Good Essays