4 Accounting problem in Excel

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wfvzba7785

Business Finance

Description

5 Tip

Complete the following exercises and problems in Excel:

  • P8-22A
  • P8-25A
  • P9-28A
  • P9-31A

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Explanation & Answer

Hello,Please find the solutions attachedAll the best

Situation

(1)
Missing Internal Control

a)

Assignment of responsibilities

b)

Separation of Duties

c)

Absence of Audit

d)

Prenumbered Documemtation

e)

Other Controls

f)

Other Controls

(2)
Possible Problems
Loss of Sales

Embezzlement Of Cash
Production of unrelaible financial statements
Inefficient cash handling. This could result in cash theft
Embezzlement Of Cash
Embezzlement Of Cash

(3)
Solution
Accountats should be assigned the task of
redesigning the accounting system, while
programmers are assigned the task of product
development.
Accounting and cash handling duties should
be assigned to different employees
The company should have audit procedures
in place so as to guarantee that financial statements
are reliable and true.
Use Prenumbered receipts
Purchase fidelity bonds for all employees who
handle cash
Cash mu...

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