ACCT1101 Lecture Notes - Lecture 7: Accounts Receivable, Accounts Payable, Internal Control
Document Summary
Merry melodies sells musical instruments and the following information is for the standard flute sold to schools: On the 1st december merry melodies had 1,400 flutes in stock which cost each. December they purchased an additional 1,800 flutes costing each. During december, merry melodies pty ltd sold its oldest inventory first. On the following slides are independent situations you have discovered, each of which may or may not have one or more internal control weaknesses. The names of the businesses have been changed to protect the innocent. List the internal control weakness(es) you find in each situation. If no weakness can be found, explain why the internal control is good. In each situation in which there is an internal control weakness, explain how you would remedy the situation to improve internal control. One employee is responsible for counting and recording all the receipts (remittances) received in the post from customers paying their accounts.
