Wednesday, January 27, 2010

ACC311

ACC311 Assignment solution:

Customer Order must have the Invoicing and Shipment address, since customers might have its warehouse locatedaway from main factory / office.2. Dispatch note should have reference of the internal computer genereted numbers on confirmed orders and should beprepared on the basis of Order confimed and not on the basis of customer order without customer's confirmation.3. Dispatch note should be prepared strictly on the basis of shipping address given in the confirmed customer order.4. Test check the instances of customer denial of paying invoices on the ground of non-receipt of goods from Glow Ltd.5. Dispatch department should be independent of collection department i.e. the persons working in dispatch departmentshould not report to collection department.

Q2.Weakness In Internal Control System==========================1. Purchases may be from different sources for less than 1000 in order to pay cash on the same day or on the next day.manager should be responsible for purchase but payments should be made by assistant after checking the invoice itemswith the items received in stock.2. Accounting records maintained by the same persons who is also incharge of cash receipts and payments.assistant should be made responsible for cash receipts and payments and manager can make enties in the books ofaccounts.3. Since manager has control over paying assistant's salary, he can use his position to take undue benefits from him.assistant salary should also be made in cheque by Mr. J himself to avoid manager's control over assistant activities.

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