Tutorial Questions

TUTORIAL QUESTIONS

TABLE OF CONTENTS
WEEK 6...........................................................................................................................................3
WEEK 7 ..........................................................................................................................................3
WEEK 8...........................................................................................................................................4
WEEK 9...........................................................................................................................................5
WEEK 10.........................................................................................................................................5
REFERENCES................................................................................................................................7

WEEK 6
Conversion cycle refers to the cycle in which the materials are converted to the finished
products. Central Production limited is a manufacturing company which is having a set system
for managing the inventory resources. Conversion cycle of company starts when it receives the
report from warehouse. Warehouse manager sends an online report about the status of inventory
to the production department for advising them in scheduling production batch run of the item.
Once the report is received it digital bills are of the materials are assessed by the clerk and the
report is regarding the items required to be manufactured by the organisation and details
regarding the items and is added over production schedule. The record is automatically added to
work order file and work order is sent directly to computer of work centre supervisor and to
computer of accounting clerk.
Work order is received by the supervisor from the computer and prints hard copy of
move tickets and the material requisition for every production process. For issue of materials and
sub-assemblies requisition is taken to the stores clerk.
In this case there is high risk regarding the addition of materials online for the work
order. An error or mistake from the system could cause wrong inventory orders. There may be
cases where the production supervisor may not receive the details for the work order on time for
which it should establish confirmation process (Rezvani, Dong and Khosravi, 2017). There is
also risk of wrong details of time for the time spent over each job. The risk regarding the
confirmation of receipt of work order details and job time is required to be cleared by the
organisation.
WEEK 7
Control weaknesses refers to failure in implementation of the internal controls.
Weaknesses in internal control increases risk of the financial reporting errors and frauds by the
executives. It is essential for the organisation to have effective internal controls for ensuring that
the financial records and reports of the company are free from errors and mistakes. Internal
controls are the accounting policies & procedures which are used for ensuring accuracy and the
reliability of the accounting reports. A company without effective internal control may not be
able to identify the errors or frauds that are being committed in the organisation.
Richard palm is using source documents like sales invoices, supplier invoices and the
purchase orders for preparing the journal voucher to make the general ledger entries. In