Sales and Collection Cycle The sales and collection cycle will entail researching of Apollo Shoes journal of sales in search of abnormal transactions and records. The process of this audit test procedures begins when a customer purchases a product from Apollo, and ends with the receipt of the complete payment from the customer. The test of controls the auditors will perform comprises the completeness, accuracy, and classification of transactions and will include accounting for a sequence of shipping documents, observing whether monthly statements are sent, and examining document packaging for internal verification. It will also test of controls for a sequence of shipping documents and the substantive tests will be to compare the date of recording the sale in the sales journal with duplicate sales invoices and bills of lading. 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.
There are four types of transactions involved in the inventory and warehousing cycle of Apollo Shoes, Inc., ordering of goods for sale, receipt of the ordered goods, storage of the merchandise, and the shipping of goods to customers. Each of these processes requires that the auditor verify that adequate controls are maintained and that the proper documents are in place for each portion of the process. Therefore, the audit will involve analytical procedures, test of controls and substantive tests on each part of the cycle. Analytical procedure Given the fact that the inventory process will vary between companies, Anderson Olds and Watershed will obtain a thorough understanding of the entire flow of goods from purchase to shipment within the Apollo Shoes organization. Analytical procedures “examine the relationship of inventory account balances with other financial statement accounts” [ (Arens, Elder, & Beasley, 2006, p. 689) ] and are used to “assess the reasonableness of inventory-related balances” [ (Arens, Elder, & Beasley, 2006, p. 689) ].
Pro forma Cash Receipt You are to prepare pro forma cash receipt for use in the company’s shops. Pick a sample transaction and show the VAT element separately. Placebo LtdFountain HouseLondonN1 | Cash Receipt #: 123456790 | Date: / / . | Cash received from ______________________________________________________Of £ ______________________________________________________________________For _______________________________________________________________________ | Payment Received in: Cash | | Cheque | | Other | | | | Net | VAT | Total | Amount Due | ........ | | | Amount Received | | | | Balance Paid | | | | _______________________Signed By | Image Source: (Free Receipt Template , 2013) What is a Cash Receipt? A pro forma cash receipt is a document narrating incoming payments from debtors or receivables and is issued by the business or creditor (Cash Receipts Function, 2011).
Merchandise Receiving Process Analysis Nathaniel Crist University of Phoenix Abstract This research paper analyzes the merchandise receiving process of Walmart, Inc. Each store is challenged with opportunities in how they control their inventory. This process is the first stage of the merchandise entering each store and how to manage the merchandise is. The process begins with taking in the merchandise through the back doors to how the overstock merchandise is controlled. Receiving, stocking, and binning merchandise are the steps that are used to ensure that inventory received is managed and controlled. The process is demonstrated in a flowchart to show the flow of the process in a pictorial format.
Phase 1 Task 2: Individual Project Applied Managerial Accounting ACCT614-1204A-01 Colorado Technical University Professor: Tracie Edmond Donna Smith 10/15/2012 ABSTRACT: In this assignment I am a “corporate business financial analyst” and I will be discussing the essential financial information, such as explaining the basic financial statements and the type of information that each statement contains, and how this information is used and why it is necessary for the Board of Directors and executive management team with essential financial information on the management of the enterprise. MEMO: 10/15/2012 COMPANY: The Sparklin Automotive Company (SAC) TO: The Board of Directors and Executive Management Team TOPIC: Basic Financial Statements and Accounting Information FROM: Donna Smith In this memo is a list of the basic financial statements, including the information that is needed for each statement, and what this information is used for. These statements will help you to understand these financial statements and the necessary information that is needed for each statement. There are many factors to consider in planning, controlling, and decision making processes. There are several reasons to review and compare the different sections of the company’s financial statements, which are explained within this documentation.
Audit Program Design Part II Aquilla Carroll-Pendleton Alison Marlo Darrell Morris Cliff Parchmon ACC/546 November 4, 2013 Chandria Willis Audit Program Design Part II A part of designing Apollo Shoes' audit program includes testing controls for the company's various cycles. At this point in the audit planning, tests of controls, tests of transactions, and analytical procedures are designed for the following cycles: sales and collections, payroll and personnel, and acquisition and payment. Sales & Collection Cycle Tests of Controls Tests of Transactions Analytical Procedures Payroll & Personnel Cycle Tests of Controls Tests of Transactions Analytical Procedures Acquisition & Payment Cycle The auditing and acquisition cycle of the audit process for Apollo Shoes, Inc. will include test of controls, substantive tests of transactions, and analytical procedures. "The acquisition and payment cycle involves the decisions and processes necessary for obtaining the goods and services for operating a business" (Arens, Elder, & Beasley, 2012). The accounts are assessed base in accordance with the generally accepted accounting principles (GAAP) to ensure they are represented fairly.
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
Unit 3: Introduction to marketing P5: Understand how and why customer groups are targeted Draft/version: 1 Tutor: T.Geenen Student: Btissame Essanoussi Class: IBS 1 A Date: 29 October 2014 Assessment 5 Task 3 : How and why are customer groups targeted? Type of evidence : P5 Six information sheets ~ Identifying customers in consumer markets : - Customer is someone who is buying the product or service. And the consumer is the one who is using the product or service and not usually pay for it. - The customers are the one who makes the purchasing decision, because they give it to the consumer. They influence the product or service they buy.
Running head: MANAGEMENT ASSESSMENT REPORT Management Assessment Report: Wal-Mart Stores, Inc. Patricia Trantham Ashford University OMM622 Financial Decision-Making Professor Prior March 29, 2010 Abstract This research paper depicts ways that Wal-Mart Stores, Inc. could use financial reporting to measure management’s strengths and weaknesses. This can be done by examining and evaluating the following information: 1. Accounting Principles 2. Financial Statement Analysis 3. Financial Ratio Analysis 4.
Industry and Company Strategic Audit Review and Analysis Industry Chosen: Retailing Industry Companies: JCPenney and MACY’S Contents 1. Introduction 3 2. Industry dynamics 4 2.1 Overview the department stores section of retail industry 4 2.2 Porter’s Five-Forces Model of Industry Competition Analysis 5 2.2.1 The threat of new entrants 6 2.2.2 The bargaining power of buyers 8 2.2.3 The bargaining power of suppliers 9 2.2.4 The threat of substitute products and services 9 2.2.5 The intensity of rivalry among competitors in an industry 10 3. Evaluating Two Companies Performance by the Balanced Scorecard 10 3.1 JCPenney Company, Inc 11 3.1.1. Company summary 11 3.1.2.