Acct 460 Final Study Notes

SMW’s current accounting information system is a cutting edge relational database system through Microsoft Access with internal controls set to adequately prevent and detect errors and fraud. This relational database system tracks sales orders, shipments, accounts receivable, cash receipts, purchases, accounts payable, cash disbursements, inventory levels and other relevant accounting information. The system’s output is compliant with Generally Accepted Accounting Principles (GAAP). The database processes currently in use at SMW are described below.

are costs that have already been incurred and cannot be changed by any decision made

This control is directly related to the accuracy transaction-related audit objective for sales. The auditor might test the effectiveness of this control by examining a sample of duplicate sales invoices for the clerk’s initials indicating that the unit selling price was verified.

The process requires Peyton Approved to discover how much inventory is sold and what the cost of goods will result in. The process requires the business to review three forms of merchandise inventory to determine which summary benefits the business’s operational behavior. One will discover when assuming that first inventory purchased by the store is the first to be sold, it is determined that the FIFO method displays the best financial outcome for the business. During the process of updating journal entries, one must enter the information proved appropriately into the T-accounts to add the balance under each record. Once the T-accounts for transactions and adjusted transactions are balanced, the next step is to enter the information provided on the balance sheet. The balance sheet will list Peyton Approved assets, liabilities and stockholders equity after added during the T-account process (Nobles, 2014). Once the balance sheet is completed the income statement, statement of retained earnings, and closing entries can be filled with the information proved. This will give the business a full review from journal entry to closing entries of the business for the six month accounting

1) Complete summary of the case study that identifies the key problems and issues, provides background information, relevant facts, the solution employed, and the results achieved.

To meet your firm’s unique needs in improving your accounting system, our solutions team implemented exceptional performance tests uncovering potential opportunities for improvement through the existing system at Design Resale Consignment store. We evaluated the current system’s record keeping and cash management processes and the transactions presently being used so that we could accurately identify the strengths and weakness within each division. After formulating the current system into two easily readable diagrams and a system flowchart, we developed a unique solution to increase operation effectiveness, improve accountability,

d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)

To detect possible misstatement or theft of inventory, (1) I will search for unrecorded liabilities by looking for open purchase orders, unmatched vendor invoices and unmatched receiving reports. (2) I will investigate suspicious behaviors from employees such living above their means,

This involves checking sales that occur at the end of a quarter against inventory, shipments, accounting records and methods. This would uncover certain sales that are put into the books but are not shipped until the next quarter, and improper sales recognition.

For transactions in Receivables Management, you can create assignments and enter transaction dimension codes for the distribution accounts that are linked to an account class. Transactions can be saved with analysis information to a single or recurring batch prior to posting. The analysis information created for transactions in the Analytical Inquiry windows can be displayed. The process of validating transactions with analysis information is also explained. These are the following commands controlled by the account receivables manager.

Most companies have detailed process maps for employees to use as a guide to successfully complete business activities. The Accounts Payable system is no different. For this client, in order for payments to be made, an order must be placed and an invoice received. While this process may seem like common sense, it’s important to test, and update it, when necessary.

Team C analyzed the accounts payable, accounts receivable, payroll, and inventory systems for Kudler Fine Foods. Kudler would now like to see a proposed audit schedule for these systems. The team will distinguish between the types of audits that may use for each process. The team will also recommend the most appropriate audit for each process and explain how to conduct the audits. Identifying events that may prevent reliance on auditing through the computer will also be presented to Kudler for review (Apollo Group, 2009).

Order fulfillment keeps track of the activity by PO number in their own EXCEL spreadsheet. They are interested in the date they receive an order, the date the

Keeping perfect record is another essential plan for my finance, and completing all documentations on time in other to summit bill for client of a completed job. Receipts and invoice should be kept correctly for tax and references.

Sales order received by the company is the paper which shows the goods customer wants to buy. Millennium will provide goods for the customer based on the required quantity in this order.