Respect to the internal controls between the business

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Reference no: EM132229372

Flow of goods (adapted from NIVRA)

Provide a description of the differences with respect to the internal controls between the following business. Indicate the causes of these differences, the type of firm (typology of organizations), the differences in measurements points, and the differences in procedures.

Importer of cars

An importer of cars sells one make in about 40 different types. Clients are consumers as well as businesses. A warranty is given per car. Only standard types are being held in stock. Other types can be delivered within one month. The importer has negotiated a credit term of two months with the manufacturer. Consumer accounts receivable are paid on a cash basis, and business accounts receivable on account (payment within 14 days after receipt of the invoice).

Wholesaler in groceries

A wholesaler in groceries sells thousands of different articles. Its buyers are retailers who all have a creditplate issued by the wholesaler. That creditplate is used to record all sales to these retailers. Payments are made at a cash register that can read the creditplate and that produces an invoice for each sales transaction.

Packing activities of a big beer brewery

A brewery delivers its beer to bars and restaurants in barrels. These barrels remain at the venue of the buyer between about one week and one month. The deposit to be made by the buyer for each barrel is EUR 250.

Reference no: EM132229372

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