Audit Assignment
Drizzy462
ControlsTemplate2195.docx|
Marco Appliances Inc. |
WP C.1. |
|
Evaluation of Control Environment |
|
|
Potential Control Strengths |
Potential Misstatement Detected or Corrected |
|
Marco uses a distributed computer system that gives employees who need access to data the appropriate access. |
This improves the control environment because it all employees are working with one database, which reduces potential errors from multiple recording of data. |
|
|
|
|
|
|
|
|
|
|
Marco Appliances Inc. |
WP C.1. |
|
|
Evaluation of Control Environment |
|
|
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
|
The case describes extensive use of policies and procedures; training new employees in these policies and procedures; and having yearly retraining sessions. However, it doesn't mention any on-going monitoring of employee behavior nor any use of employees' record of compliance with them in annual performance reviews. |
Having clear policies and procedures with excellent training is good, but you also need some form of monitoring system to insure the emphasis and training is working. |
Recommend that Marco implement annual reviews that include evaluation of how effectively employees are implementing firm policies and procedures. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marco Appliances Inc. |
WP C.2. |
||
|
Evaluation of Transaction Processing Control Design |
|
||
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
Possible Weakness |
|
Sales |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivery |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marco Appliances Inc. |
WP C.2. |
||
|
Evaluation of Transaction Processing Control Design |
|
||
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
Possible Weakness |
|
Billing |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collections Management and Write-offs |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marco Appliances Inc. |
WP C.2. |
||
|
Evaluation of Transaction Processing Control Design |
|
||
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
Possible Weakness |
|
Sales Returns |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Receipts |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marco Appliances Inc. |
WP C.2. |
||
|
Evaluation of Transaction Processing Control Design |
|
||
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
Possible Weakness |
|
Merchandise Purchases |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receipt of Goods |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marco Appliances Inc. |
WP C.2. |
||
|
Evaluation of Transaction Processing Control Design |
|
||
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
Possible Weakness |
|
Vouching and Recording Payables for Merchandise |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-merchandise Purchases and Services Received |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WP C.2. |
|||
|
Evaluation of Transaction Processing Control Design |
|
||
|
Potential Control Weakness |
Potential Misstatement |
Recommended Correction |
Possible Weakness |
|
Cash Disbursements |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
