Reference no: EM132864608

Brian's Busses is a small manufacturer of minivan conversion kits that young families can buy to upgrade their people mobiles into more spacious and effective family transport. Brian sells commercially (i.e. business to business) and at retail (direct to the consumer). Most of what is sold comes directly from in stock inventory. Brian's organization includes a purchaser, a receiving agent who also ships stuff, an inventory manager and a couple of stock handlers in the warehouse. His accounting group includes someone handling receivables, someone who handles payables, his controller, a cashier and an administrative assistant. There's a manager who deals with the salespeople, a couple of inside sales agents and a couple of external sales reps who visit customers.

Think back to the Revenue Transaction Cycle Control Documents handout, the textbook and work done in our classes.

If Brian's were your company, and you were designing the accounting control system, there would be 5 broad categories of control activities that the system should address to ensure management directives are carried out. Please list and describe those 5 categories.

(HINT .. please note that these are NOT the 5 elements of the COSO model. Note that when we discussed the categories of controls in class, we noted that they are repeated in each transaction cycle so that what you've studied in Revenues will also be useful in your work on Expenditures, Production and Administration.)