Reference no: EM131361491
Assignment: Colorado Springs Company's Internal Control
Colorado Springs Company (CSC) is a wholesaler with fiscal year ended December 31 of previous year. Since it is publicly-traded, it undergoes external audit. The most recent audit was completed in February of this year. As part of the audit of the financial statements, the auditors tested the effectiveness of management's assessment of internal control over financial reporting. The auditor found out that existing internal controls were inadequate. Specifically, CSC's accounting system for sales, cash receipts, accounts receivables, and accounts payable had material weakness. The audit revealed that there were:
• Poor accounting system of recording keeping
• Late deposits of cash receipts
• Excessive aged and high accounts receivable balances
• Disregard for early payments for discounts on invoices
• Late payments of accounts payable (sometimes due to lack of cash)
• Lax appropriate segregation of duties
• Relaxed rules on accounting principles' application
• Unqualified supervisor and management
• Inadequate control on supervisor and management overrides
• Lax oversight by external board of directors
a. For each finding above, indicate internal control principle that CSC violated.
b. For each finding above, provide an appropriate recommendation for CSC to correct the weakness.
Your response should include two to three pages of written text in addition to any calculations and solutions you offer to support your thinking.
|
Is paid-in capital or earned capital more important
: Why is it important to keep paid-in capital separate from earned capital? As an investor, is paid-in capital or earned capital more important? Explain why.
|
|
Choose an event that was significant enough to cause
: Choose an event that was significant enough to cause widespread impact, involving multiple levels of government and the surrounding community; however, avoid selecting major disasters, including 911 and Hurricane Katrina, for which multiple report..
|
|
Madonna credit card bills
: This follows because Madonna incurs 0.005*20,000 in interest charges on her Saks card during Month 1. Help Madonna solve her problem. Once you have solved this problem, given an intuitive explanation of the solution found by Solver.
|
|
Define what changes would be required to job designs
: Identify inefficiencies in the way that human resources are utilized in a business at which you have worked in the past or with which you are familiar.Describe ways in which the inefficiencies that you have identified could be reduced or eliminated..
|
|
Give appropriate recommendation for csc to correct weakness
: For each finding above, indicate internal control principle that CSC violated. For each finding above, provide an appropriate recommendation for CSC to correct the weakness.
|
|
What is meant by error due to parallax
: what is meant by error due to parallax?
|
|
Calculate how long it will take to build the project
: FC091 Applications of Mathematics. You also need to calculate how long it will take to build the project. Use the table below to calculate the construction programme (method). You can do several tasks at once, but the more people you use, the high..
|
|
Research three billing and coding regulations
: Research three billing and coding regulations that impact healthcare organizations. Reflect on how these regulations affect reimbursement in a healthcare organization. Comment on what seems to work well and what could be improved.
|
|
Business plan
: Your task for this assignment is to go back in time to 2014 and write the Proposal/Business Plan for starting your proposed new company that won essential investor capital to commercialise your digital innovation.
|