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The Accounts Receivables Clerks

   

Added on  2020-03-16

8 Pages1530 Words41 Views
Running Head: Problem Analysis ACCOUNTING CONTROLLERSHIP

Problem Analysis1ANSWER 1No, it would not be okay if the accounts receivables clerks is also handed over with the work of bank reconciliation as it may enable the AR clerk to commit fraud. The fraud in relation to this issue is termed as lapping. Lapping involves delayed recording of payment received fromcustomers so as steal the cash by gaining undue advantage of functions of records handling. Ifan employee is handed over with both the functions at the same time the chances of fraud willincrease as it will become easier for the employee to misappropriate the cash receipts from the customers for their personal benefits by making alterations to the receipts account.ANSWER 2Tone at the top is not the external environmental factor influencing the company.ANSWER 3Two methods that are commonly used to speed up the receivables collections are:Rewards and penalties: To speed up the process of cash collection from the account receivables firm can offer discounts and other rewards for making the early payments and also it must set out the strict policies for those who makes payment after due date such as penalties imposition or interests for the late payments.Outsourcing of receivables: outsourcing can be opted for if the firm has significant amount involved in accounts receivables as it will enable business to generate the cash inflows from the receivables on time through the use of expert services in this area i.e. the services of collecting agencies.ANSWER 4

Problem Analysis2AAll check stock must be locked up when not in use.INVENTORYBReview all employee advances with the payroll and payables staff at least once per month.PREPAID EXPENSESCRequire approval of bad debt write-offs.ACCOUNTS RECEIVABLESDAudit shipment termsACCOUNTS RECEIVABLESERequire approval of bad-debt write-off.ACCOUNT RECEIVABLESFReview Uncashed Checks.CASHGAudit the receiving dock.ACCOUNT RECEIVABLESHCompare capital investment projections to actual results.FIXED ASSETSIRequire supervisory approval of all borrowings and repaymentsDEBTJRequire approval of credits.ACCOUNT RECEIVABLESKPerform a physical inventory of plant equipment every three months.FIXED ASSETSANWSER 5Selling price 3Variable cost .50Contribution per unit 2.50Break even sales units= Total Fixed Cost/Contribution per Unit (Cafferky, 2010) 100000/2.50

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