Accounting

NameUniversityLecturerCourseDatea . refinement by Elaine is characterized by overleap of gross revenue reach and security measures . Sales clerks preserve eff upshots and stock each wargon hence they atomic number 50 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 fact is non-existent . The clerks can too collude with some customers if the give back is infra 50 as for such amount a know is non a mustb . 1 . congenital controls are put in place to promote efficiency , cut off hazard 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 res ponsibilities . Internal controls hold related operations to be performed by distinct persons . In Elegance by Elaine sales clerks can issue come backs 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 date the customer is absent . Also , a receipt is not a must for any item below 50 and even when the item is more than 50 , the only mark off is by mailing the customerInsufficient communication . Sales clerks in Elegance by Elaine are the prime link between the field of battle and its customers . Upper management seems to take a rather abeyant role in thisb . 2 . Issuing a line credit in place of a property recall for all merchandise returned without a receipt would reduce the possibility of theft of bills . Instead of writing a hypocrite refund , the sales clerk would write a phony breed cred it which is not specie .

Store attribute can also arouse management suspicion if highly employ hence the sales clerks can only use a few to buy merchandise for themselvesAdvantages of issuing a barge in credit in place of cash refund take the possibility of cash theft is reduced , customers for maintaining opt for opposite retentivity 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 first-year few weeks after the holidays . This cash can be utilize for other purposes such as paid creditors or get spring products (Sarbanes-Oxley internal cont rol and cash , 2002The disadvantages include sales reduction . Tightening of the return polity might ride the customers after the holidays who want to return items for cash refundsTraining . A in the raw system comes with new operations . The customers after the holidays will want to be trained on the new system oddly on how to fill out the carry for a store credit . Sales clerks will also need reading in handling the redemption of the store credit on any future purchase of merchandise . This will impingement the firm on the basis...If you want to get a wide essay, order it on our website: OrderEssay.net

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