Accounting

NameUniversityLecturerCourseDatea . refinement by Elaine is characterized by privation of gross revenue bring into being and security measures . Sales clerks preserve eff give ways and restock every wargon hence they terminate habituate this opportunity by writing dissimulator reelects and steal money from the coin commemorate by claiming they have generateed it to a customer who in genuine concomitant is non-existent . The clerks can too collude with some customers if the revert is at a lower place 50 as for such amount a communicate is non a mustb . 1 . congenital controls are put in place to promote efficiency , cut off fortune of any asset wrong and ensure that the fiscal statements are reliable and comply with laws and regulations . Various weaknesses in the innate controls at politeness by Elaine can be identifiedSeparation of responsibilities . Internal controls enquire related operations to be performed by distinct persons . In Elegance by Elaine sales clerks can issue rewards and restock all merchandise hence the fortuity of committing a fraudAuthorization and lack of proof . The interjects manager is only available to crystallize return slips two hours later on they have been issued by which succession the customer is absent . Also , a receipt is non a must for any item below 50 and even when the item is more than 50 , the only footrace is by mailing the customerInsufficient communication . Sales clerks in Elegance by Elaine are the prime link between the household and its customers . Upper management seems to take a rather hibernating(a) role in thisb . 2 . Issuing a fund credit in place of a property retrovert for all merchandise returned without a receipt would reduce the initiative of theft of bills . Instead of writing a hypocrite refund , the sa les clerk would write a phony livestock cre! dit which is not bullion .

Store attribute can also arouse management suspicion if highly utilise hence the sales clerks can only use a few to buy merchandise for themselvesAdvantages of issuing a line of descent credit in place of immediate payment refund include the possibility of cash theft is reduced , customers for maintaining opt for early(a) stemma merchandise instead of a cash refund hence less revenue loss reduction in returns as customers are more concerned in cash rather than the gift and the system will enhance cash growth as opposed to the cash loss witnessed during the counterbalance few weeks after the holidays . This cash can be use for other purposes such as pai d creditors or purchasing spring products (Sarbanes-Oxley internal control and cash , 2002The disadvantages include sales reduction . Tightening of the return polity might befuddle the customers after the holidays who want to return items for cash refundsTraining . A naked system comes with new operations . The customers after the holidays will destiny to be trained on the new system particularly on how to fill out the carry for a store credit . Sales clerks will also need nurture in handling the redemption of the store credit on any future purchase of merchandise . This will advert the firm on the basis...If you want to get a across-the-board essay, order it on our website: OrderEssay.net

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