Reference no: EM131260902

What internal control procedure(s) would best prevent or detect the following problems?

a. A production order was initiated for a product that was already overstocked in the company’s warehouse.

b. A production employee stole items of work-in-process inventory.

c. The “rush-order” tag on a partially completed production job became detached from the materials and lost, resulting in a costly delay.

d. A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom.

e. A production worker entering job-time data on an online terminal mistakenly entered 3,000 instead of 300 in the “quantity-completed” field.

f. A production worker entering job-time data on an online terminal mistakenly posted the completion of operation 562 to production order 7569 instead of production order 7596.

g. A parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities.

h. A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.

i. The quantity-on-hand balance for a key component shows a negative balance.

j. A factory supervisor accessed the operations list file and inflated the standards for work completed in his department. Consequently, future performance reports show favorable budget variances for that department.

k. A factory supervisor wrote off a robotic assembly machine as being sold for salvage but actually sold the machine and pocketed the proceeds.

l. Overproduction of a slow-moving product resulted in excessive inventory that had to eventually be marked down and sold at a loss. (Romney 437)

Romney, Marshall B., Paul Steinbart. Accounting Information Systems, 13th Edition. Pearson Learning Solutions, 2014-01-01. VitalBook file.