of Chapter 6 in Core Concepts of Accounting Information Systems.

Learn Case Research 6-19 “West Finish Boutiques” below CASE ANALYSES on pages 197-198 of Chapter 6 in Core Concepts of Accounting Information Techniques.

Write a 175- to 260-word response to every of the 2 necessities (#1 and #2) following the case research. Your responses should be in your individual phrases. In your paper, for Questions #1 and #2 checklist every of the six situations individually with their corresponding dangers and inside controls to mitigate these dangers. For Question Assignment #2, don’t summarize inside controls — every of the six situations needs to be listed individually with particular person inside controls.

6-19. West Finish Boutiques

The West Finish Boutiques firm was based by Libbie Williams in 1990 with a single retailer in School Station, Texas, and the corporate now has 21 outlets situated in the triangle of Dallas, San Antonio, and Austin, Texas. Libbie was an accounting main in faculty, handed all the CPA examination in her first try with excessive scores, and labored for one of the big CPA companies for 11 years previous to opening her first retailer. Primarily based on her work expertise, she absolutely understands the worth of sturdy inside controls. Additional, she just lately chosen a state-of-the-art accounting system that connects all of her shops’ monetary transactions and reviews.

Libbie employs two inside auditors who monitor inside controls and likewise seek for methods to enhance operational effectiveness. As half of the monitoring course of, the interior auditors take turns conducting periodic opinions of the accounting information. For example, the corporate takes a bodily stock in any respect shops as soon as every year and an inside auditor oversees the method. Chris Area, essentially the most senior inside auditor, simply accomplished a overview of the accounting information and found a number of objects of concern. These have been:

1. Bodily stock counts diversified from stock ebook quantities by greater than 6% at two of the shops. In each instances, bodily stock was decrease.
2. Two of the shops appear to have an unusually excessive quantity of gross sales returns for money.
three. In 9 of the shops, gross revenue has dropped considerably from the identical time final yr.
four. At 4 of the shops, financial institution deposit slips didn’t match money receipts.
5. One of the shops had an uncommon quantity of bounced checks. It appeared that the identical worker was liable for approving every of the bounced checks.
6. In seven of the shops, the quantity of petty money available didn’t correspond to the quantity in the petty money account.

Necessities

1.For every of these considerations, determine a danger that will have created the issue.

On pages 197-198 of Chapter 6 of Core Concepts of Accounting Information Techniques, discover Case Research 6-19 “West Finish Boutiques” below CASE ANALYSES.

Following the case research, write a 175- to 260-word response to every of the 2 necessities (#1 and #2). Your solutions should be written in your individual phrases. Record every of the six conditions independently with their accompanying hazards and inside controls to handle these dangers in your paper for Questions #1 and #2. Inside controls shouldn’t be summed up in Question Assignment #2; as a substitute, every of the six conditions needs to be described individually, with particular inside controls.

6-19. Boutiques in the West Finish

The West Finish Boutiques firm was based by Libbie Williams in 1990 with a single retailer in School Station, Texas, and the corporate now
2.Suggest an inside management process to forestall the issue in the long run.