SEN ements-Blackboa | My Grades _ Biological Soe u. ACCT 2312: personal Re X | +
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SEN ements-Blackboa | My Grades _ Biological Soe u. ACCT 2312: personal Re X | + v the Favorites Bar folder. Or import from another browser. Import favorites cs File Manager ReviewsForms Community Tools 02 Assignments Internal Control e Personal Responsibility for Internal Control nSuppose you have a part-time sales position over the winter break in a small clothing store that is part of a national chain. The with whom you have become friendly, hired you. described below, and identify two internal control problems that exist in each situation. You arrive at the store at 6 pm to take over the evening shift from the full-time employee who hired you. You notice that this person takes a coat from a rack, puts it on, and leaves by the back door. You are not sure If the coat is one that was for sale or If it belonged to the employee You are the only person in the store on a busy evening. discover that the cash register is $20 short of cash. You consider replacing the$20 out of your pocket because you think you may have made a mistake and are afraid you might lose your job if the company thinks you took the money. 1. 2. At closing time, you total the cash register and the receipts and ed Nov 13. 2017 2 03 AM (13 days ago Nov 28.2017 5.00 PM(1 days from nowExplanation / Answer
Personal Responsibility for Internal Control;
Personality responsibility for internal control means there is a specified responsibility of each and every employee of the internal control. So if there is any mismatch then due to cross checking it will be identify and responsible individual will be interrogated.
Now let’s solve both situations;
(1).
In this case, I will do following checking work;
I will check beginning and ending inventory of the day and also check sales book of the day. Apart from this I will check purchase of that day also.
If (opening inventory + purchase – Sale = ending inventory), fits correct then it means that coat was belong to employee.
If it does not fit in the equation then it means coat was for sale and employee intentionally took it for personal use.
Thus if I found any mismatch then I will note it down and will inform to the senior or to authorize person.
(2).
In this case, first of all I will cross check cash register carefully. I will check all receipts and payments of the cash register and try to find out figure that is equal to $20.
If there is a expense or receipt that equal to $20 then I will try to check that particular transaction in detail because it may happen that sale were made on credit but I have recorded it in cash register. Apart from this it may also happen that a cash payment is made but bot recorded in the cash register.
So after checking well I definitely find out the reason for that cash shortage. If after all I do not find it then I will inform for that to my senior honestly. I will not replace $20 out of my pocket.
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