I need help with this assignment ASAP details of the case

<<ApolloShoesOrgChart.xls>> Date: 24 OCT 2014 07:14:35 +0000 From: "Karina Ramirez" <[email protected]> Subject: Upcoming Apollo Shoes Engagement Attachment: <<APManual.doc>>

Per your request, I have attached a copy of our accounting and procedures manual. We look forward to your upcoming fieldwork. Please let us know if there is anything else we can provide you to make your job easier.

Karina

Karina Ramirez

Director, Internal Audit

Apollo Shoes, Inc.

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Apollo Shoes

Accounting and Control Procedure Manual

Sales and Accounts Receivable

Daily batches of sales invoices shall be analyzed by sales totals in the athletic shoes product lines. Sales credits are coded to three product line sales revenue accounts.

Charges to customer accounts should be dated the date of shipment.

When sales invoices are recorded, the numerical sequence shall be checked by an accounts receivable clerk, and missing invoices must be located and explained. The items shipped shall be compared to the items billed for proper quantity, price, and other sales order terms.

The general ledger supervisor shall compare the copy 2 daily batch total with the copy 4 individual accounts posting total sent from the accounts receivable department.

Discrepancies shall be investigated to help assure that the customer subsidiary accounts are posted for the same total amount posted to the control account.

At the end of each month, the total of the trial balance of customer account balances (prepared by the accounts receivable department) shall be reconciled to the general ledger control account by the general ledger supervisor.

Sales invoice batches shall be dated with the date of shipment, and totals of batches (including product line sales for athletic shoes) shall be accumulated each month and recorded in the accounts receivable control and sales revenue accounts. The general ledger supervisor shall approve all monthly summary entries before they are posted to the general ledger.

The treasurer shall approve all cash refunds and allowance credit memos for sales returns, after initiation by customer relations personnel.

The marketing vice president shall periodically analyze sales activity by product lines in comparison to budgets and forecasts and prior years’ activity.

Cash Management

The monthly bank statements shall be mailed to the cash management department in the treasurer’s office. Personnel use the duplicate deposit slips retained when bank deposits were made, the cash receipts journal listing, and the cash disbursements listing to reconcile the general bank accounts. The payroll bank account is also reconciled, utilizing the payroll register retained by the treasurer’s office.

Cash management personnel shall compare cash receipts journal daily deposit records with the bank deposits and duplicate deposit slips when the general bank account reconciliation is performed.

At the discretion of the director of internal audit, internal auditors will occasionally make unannounced reviews of the bank account reconciliations. They may also prepare reconciliations without prior notice given to cash management personnel.

Cash Receipts and Accounts Receivable Processing

All cash receipts from customers related to sales shall be credited to accounts receivable individual and control accounts.

The accounts receivable department shall post credits to individual customer accounts, dating the entries with the date of the remittance list.

Statements of accounts receivable balances shall be mailed to customers each month by the accounts receivable accounting department. Customers’ reports of disputes or differences shall be handled by customer relations personnel in the marketing department.

Cash Disbursements

All disbursements shall be made by check, signed by the treasurer, including reimbursements of the petty cash funds.

Checks shall be made payable to a named payee and not to “cash.”

Blank check stock shall be kept under lock and key in the accounts payable accounting department. Under no circumstances may blank checks be signed by the treasurer.

Voided and spoiled checks shall be transmitted to the treasurer for inspection and later filed in numerical order with paid checks.

Cash disbursement journal entries shall be dated with the date of the check. The related monthly general ledger summary entries shall carry the date of the month summarized.

Inventory Perpetual Records

Inventory additions shall be dated with the date of the receiving report.

Inventory issues shall be dated with the date of shipment.

Fixed Asset Records and Transactions

When acquisition costs exceed the capital budget authorization by 10 percent or more, the additional expenditure shall be approved by the treasurer and board of directors, in advance if possible.

Zero salvage values shall be used in all depreciation calculations.

Useful life and depreciation method assignments for financial statement calculations shall follow these general guidelines:

Buildings Declining Balance 15 years

Equipment Declining Balance 3-6 years

All repair, maintenance, and capital additions less than $5,000 shall be expensed. Amounts over $5,000 should always be capitalized unless unusual conditions point to proper expensing.

Attachment: <<APManual.doc>>