User Account

All Pages

Describe the potential financial misstatements

Assignment Help Accounting Basics
Reference no: EM131744499

Question: YourTeam.Com is an online retailer of college and professional sports team memorabilia, such as hats, shirts, pennants, and other sports logo products. Consumers select the college or professional team from a pull down menu on the company's web site. For each listed team, the web site provides a product description, picture, and price for all products sold online. Customers click on the product number of the items they wish to purchase. The following are internal controls YourTeam.com has established for its online sales:

1. Only products shown on the web site can be purchased online. Other company products not shown on the web site listing are unavailable for online sale.

2. The online sales system is linked to the perpetual inventory system, which verifies quantities on hand before processing the sale.

3. Before the sale is authorized, YourTeam.com obtains credit card authorization codes electronically from the credit card agency.

4. Online sales are rejected if the customer's shipping address does not match the credit card's billing address.

5. Before the sale is finalized, the online screen shows the product name, description, unit price, and total sales price for the online transaction. Customers must click on Accept or Reject sales button to indicate approval or rejection of the online sale.

6. Once customers approve the online sale, the online sales system generates a Pending Sales file, which is an online data file that is used by warehouse personnel to process shipments. Online sales are not recorded in the Sales Journal until warehouse personnel enter the bill of lading number and date of shipment into the Pending Sales data file.

Required: a. For each control, identify the transaction-related audit objective(s) being fulfilled if each control is in effect.

b. For each control, describe the potential financial misstatements that could occur if the control was not present.

Reference no: EM131744499

Questions Cloud

What are your thoughts and feedback regarding information : What are your thoughts and feedback regarding the information and activities for each chapter
What areas of the economy should be closely watched : Module: Discussion Forum. What areas of the economy should be closely watched as indicators of future activity?
During diversity management session : During a diversity management session, a manager suggests that stereotypes are a necessary part of working with others.
What were the lasting affects of the new frontier : What were the lasting affects of the New Frontier? Explain in detail to help me make sense of your explanation.
Describe the potential financial misstatements : For each control, describe the potential financial misstatements that could occur if the control was not present.
Explain effects that government policies have on production : Explain major effects that government policies have on production and employment. Predict potential effects that government policies could have on your company.
How did you resolve your ethical dilemma, problem situatble : Describe the situation and then explain why it was a difficult or challenging problem.
Key drivers of competition in the retail industry : Identify the key drivers of competition in the retail industry for Walmart using the Porter's Five Force model.
Describe the trade of materials : Describe the nature of Atlantic trade between 1650-1800. Describe the trade of materials, manufactured goods, and persons as part of the trade.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd