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  • Chinnih D. Alcantara BSA-5203 Internal Control Case Smith's Market (Small Business Sales Accounting System)

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    The document discusses internal control weaknesses at Smith's Market. It notes that sales clerks can access cash drawers without accountability, cash register tapes are not used to control cash levels in drawers, shift supervisors do not verify cash amounts when drawers are logged in/out, the treasury clerk counts cash unsupervised, and the treasury clerk has custody of assets and records sales without separation of duties. The document provides a case study on improving internal controls at a small business sales and accounting system.

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    Econ Unemployment

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    The document discusses internal control weaknesses at Smith's Market. It notes that sales clerks can access cash drawers without accountability, cash register tapes are not used to control cash levels in drawers, shift supervisors do not verify cash amounts when drawers are logged in/out, the treasury clerk counts cash unsupervised, and the treasury clerk has custody of assets and records sales without separation of duties. The document provides a case study on improving internal controls at a small business sales and accounting system.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    12 views3 pages

    Chinnih D. Alcantara BSA-5203 Internal Control Case Smith's Market (Small Business Sales Accounting System)

    Uploaded by

    maiaaaa
    The document discusses internal control weaknesses at Smith's Market. It notes that sales clerks can access cash drawers without accountability, cash register tapes are not used to control cash levels in drawers, shift supervisors do not verify cash amounts when drawers are logged in/out, the treasury clerk counts cash unsupervised, and the treasury clerk has custody of assets and records sales without separation of duties. The document provides a case study on improving internal controls at a small business sales and accounting system.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Chinnih D.

    Alcantara
    BSA- 5203

    INTERNAL CONTROL CASE

    Smith’s Market (Small Business Sales Accounting System)

    A. Data Flow Diagram of the Current System


    B. System Flow Chart of Current System
    C. Internal Control Weaknesses

     Access to the cash drawers by sales clerks requires more accountability. Each
    drawer is accessed by various clerks throughout the day and cash may be
    withdrawn by any of them.

     The internal cash register tape should be used as a control to determine how
    much cash (including checks, and credit card vouchers) should be in the register
    drawer.

     The shift supervisor does not sign for the specific amount of cash received or
    returned at the end of the day. He simply logs the drawers in and out.

     The treasury clerk is unsupervised in the counting of cash.

     The treasury clerk has asset custody and responsibility for recording sales and
    cash in the journal and General Ledger.

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