The accounts are assessed base in accordance with the generally accepted accounting principles (GAAP) to ensure they are represented fairly. Tests of Controls The test of controls purpose for the acquisition and payments cycle is for the detection of understatements. Tests of controls for this cycle would include: 1. Verify that correct documents (purchase order, purchase requisition and vendor’s invoice) are prepared and attached to the voucher and examined for existence when submitted to appropriate departments. 2.
Finally, the test of controls for the posting and summarization objective will be to examine evidence that the accounts receivable master file is reconciled to the general ledger and observe whether monthly statements are sent to customers. Transaction-Related Audit Objectives Key Internal Controls Tests of Controls Substantive Tests of Transactions Recorded sales transactions are accurate. Sales and amounts are internally verified for description of the order and quantity. Examine indication of internal verification Compare recorded transitions in the sales acquisitions journal with the vendor’s invoice, receiving report, and other supporting documents. Sales invoices, shipping documents, and sales orders are pre-numbered for Apollo.
See figure 1. General Question 1. Mark the main flows of goods and money in a system diagram and use a chronological flow list to detail/explain the steps of the business process. Draw your own system diagram. [pic] Chronological flow of activities (Business Process): 1.
Give some examples. A relationship is a logical connection b/t records form two or more tables. All relationships can be categorized as one-to-one, one-to-many, or many-to-many. (e.g., a customer places orders; an employee has dependents; and e.t.c) 3. What is an attribute?
18-1 Identify the accounts and the classes of transactions in the acquisition and payment cycle • 3 classes of transactions included in the cycle: 1. Acquisitions of goods and services 2. Cash disbursements 3. Purchase returns and allowances and purchase discounts 18-2 Describe the business functions and the related documents and records in the acquisition and payment cycle • Purchase requisition: used to request goods and services by an authorized employee • Purchase order: document used to order goods and services from vendors. Includes description, quantity, and related information for goods and services company intends to purchase • Receiving report: a paper or electronic document prepared at the time goods are received • Vendor’s invoice: a document received from the vendor and shows the amount owed for an acquisition • Debit memo: a document received from the vendor and indicates a reduction in the amount owed to a vendor because of returned goods or an allowance granted • Voucher: commonly used by organizations to establish a formal means of recording and controlling acquisitions, primarily by enabling each acquisition transaction to be sequentially numbered • Acquisitions journal/listing: or purchase journal, generated from acquisitions transaction file and typically includes vendor name, date, amount, and account classifications for each transaction • Accounts payable master file: records acquisitions, cash disbursement, acquisition returns and allowances transaction for each vendor • Accounts payable trial balance: listing includes the amount owed to each vendor or for each invoice or voucher at a point in time • Vendor’s statement: document prepared monthly by the vendor and indicates the beginning balance, acquisitions, returns and allowances, payments to the vendor, and ending balance • Check: commonly used to pay for acquisition when
Basically, it is used to anaylse the business as a whole and per section and to determine performance. It is also a requirement of the ATO. What are the expectations of managers and supervisors in relation to budget or financial plans? To maintain the budget and implement the financial plans into the business. This also includes educating staff about the responsibilities of maintaining costs.
The above calculations have been performed using the CLTV method described in the case. Your team assignment is to analyze these data, and the information given in the case, to balance CLTV and current profitability. You should make strategic and tactical recommendations for how to manage these three customer segments. Specific questions to consider: (max 2 page write up to be printed and submitted, one per group) * What should RBC’s strategy be for managing each market segment? * What should RBC do about customers who are unprofitable?
The second stage of ABC is identifying cost drivers to each activity cost pool (Hilton 2008, p. 173). Each activity cost pool consist of own pool rate which is defined as cost per unit of the cost driver. As for ABM, the purpose is to support organizational strategy, improve operations and manage costs by using provided information. The ABC analysis helps to revise the product pricing to reflect the product cost more precisely (Hilton 2008, p. 186). After initially adopting ABC, a company would have already identified the current activity cost driver rates, estimates of process, product and customer costs.
3. Board of Directors: d. What are the functions of the board? e. The decision making process and approval process. During the survey we will be requesting to look at paperwork and documents as well as interviewing employees involved in the day to day operations of the departments. Field work phase We used following techniques in our field work: -Interview with Bert Roberts who was the chairman of the board and John Sidgmore, vice chairman of the board (see exhibit A) -Interview with Max Bobbit, the chairman of the Audit Committee -Review of minutes of Board meetings -Evaluation of the functions of the Board based on the review of the organizational chart -Review of company’s procedures manual on compliance -Accounting department organization structure and related functional job descriptions including responsibility and authority relationships Review Work Steps | Budgeted Hours | Personnel Assigned | 1.
The Benefits Watch system and its components work together in general terms according to the diagram in Appendix A. The client and administrators submit the inputs to the system – claims data and eligibility information. The data is transformed and entered into the data warehouse and then is analyzed by the algorithms and transformed into the audit data store. The results are put into the data warehouse where it is analyzed by the business analysts. The results are then put into a report and presented to the client.