Chapter 5 18. a. They should use the resistance of meeting auditing standards and contributory neglegence. Stuart Supply Company management is responsible for the fraud. The fraud was complicated and difficult to discover‚ but the steps recommended by Lauren Yost & Co made it possible. The president of Stuart Supply Company ignored the proposal to count the inventory on the same day‚ and was therefore responsible to breakdown of detecting the fraud due to his decision. Luckily‚ Lauren Yost & Co
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goods have been shipped‚ the bill of lading generates related sales invoices as well as the entry in the sales journal. An original copy of the bill of lading is sent to the customer while the rest are retained with the seller. Sales Invoices- Is a document‚ sometimes electronic‚ which consists of a description of the goods sold‚ their quantities‚ price‚ freight prices‚ and other relevant data. And the original copy of the sales invoice is sent to the customer and the others are retained by the seller
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CHAPTER 7 Revenue and Collection Cycle LEARNING OBJECTIVES Review Checkpoints Exercises‚ Problems‚ and Simulations 1. Discuss inherent risks related to the revenue and collection cycle with a focus on improper revenue recognition. 1‚ 2‚ 3 59 2. Describe the revenue and collection cycle‚ including typical source documents and controls. 4‚ 5‚ 6‚ 7‚ 8 54‚ 55‚ 61‚ 63‚ 64‚ 66 3. Give examples of tests of controls over customer credit approval‚ delivery‚ and
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QRB/501 Week 2 Pre Quiz Find the trade discount on a computer that lists for $500 if a discount rate of 35% is offered. 500*35% The trade discount is $175 Calculate the trade discount for 60 boxes of computer paper if the unit price is $12.43 and a single trade discount rate of 20% is allowed. 60 * 12.43 = 745.80 * 20% = The trade discount is $149.16 Use the net price rate to calculate the net price for 50 boxes of computer paper if the unit price is $13.86 and a single trade discount
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Enter an invoice you have received from a vendor Enter a service that can be included on an invoice Look at the accounts set up for your company Ensure the information in QuickBooks matches the bank’s information Write a check for a bill that you have received and entered in QuickBooks Record a customer payment to your bank account View a running balance of bank account transactions Bill your customer and receive payment at the same time Receive a payment for an invoice on a customer’s
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related liability‚ and (4) depreciating assets purchased. True False 2. Purchases are requisitioned by a purchasing department that seeks the best prices and quality. True False 3. The accounts payable department reconciles the vendor invoice‚ purchase order‚ and receiving report prior to approving the payment to the vendor. True False 4. Bill of ladings for goods shipped from a vendor to the purchasing company should always include the company’s purchase order number. True False
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out wherever I am I will empower I will be green Problem in detail Difficulties of existing sales system 1. Wasting time it takes a long time to issue a sales invoice and record in the ledger in manual system. 2. Searching & referencing Searching & referencing is tougher and takes a long time. Ex: To search a issued invoice or receipt 3. Data security Data security is lower in manual system. Ex: No
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or other conditions beyond our control. 5) Packing list must accompany each shipment. 6) Invoices in duplicate to be mailed to our address on the date of shipment. 7) Invoice must show our purchase order number‚ terms and full description of the material shipped. 8) Drafts and COD shipments will not be accepted. 9) Foreign Shippers must supply one set of duplicate commercial invoices and one set of NAFTA documentation for Customs clearance. Customs Broker will be indentified on
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Sales and purchase: The terms ¨sales order¨ and ¨purchase order¨ are not interchangeable‚ they are two very different documents. A sales order‚ abbreviated in business as SO‚ comes from a business to a customer. By comparison‚ a purchase order comes from a business to a vendor. Both are fulfillment methods‚ the sales order representing outside sales‚ and the purchase order representing internal corporate goods or service requests. Sales orders and purchase orders are tools for tracking business
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only responsible for collecting payment for invoices from accounts payable department‚ in addition‚ he was the only responsible for turning the invoices in to VP for approval as well. It is clear that the fraud has occurred due to lack of separation of duties in processing of invoices. According to the auditor‚ McGrane‚ “For any business transaction‚ the invoices should be dispatched independently to approving authority. Once signed‚ the approved invoices should be sent independently to accounts payable
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