Accounting

NameUniversityLecturerCourseDatea . refinement by Elaine is characterized by escape of sales take and security measures . Sales clerks preserve eff strikes and restock either wargon hence they croupe habituate this opportunity by writing dissimulator reelects and steal money from the coin commemorate by claiming they have generateed it to a customer who in genuine occurrence is non-existent . The clerks can too collude with some customers if the reward is infra 50 as for such amount a recognize is non a mustb . 1 . congenital controls are put in place to promote efficiency , cut off prospect of any asset wrong and ensure that the fiscal statements are reliable and comply with laws and regulations . Various weaknesses in the innate controls at elegance by Elaine can be identifiedSeparation of responsibili ties . Internal controls regard related operations to be performed by distinct persons . In Elegance by Elaine sales clerks can issue take backs and restock all merchandise hence the fortuity of committing a fraudAuthorization and lack of proof . The interjects manager is only available to crystallize return slips two hours later on they have been issued by which term the customer is absent . Also , a receipt is not a must for any item below 50 and even when the item is more than 50 , the only streamlet is by mailing the customerInsufficient communication . Sales clerks in Elegance by Elaine are the prime link between the field of study and its customers . Upper management seems to take a rather inactive role in thisb . 2 . Issuing a ancestry credit in place of a property repay for all merchandise returned without a receipt would reduce the opening of theft of bills . Instead of writing a hypocrite refund , the sales clerk would write a phony lay in credit whic h is not bills .

Store attribute can also arouse management suspicion if highly use hence the sales clerks can only use a few to buy merchandise for themselvesAdvantages of issuing a enclose credit in place of exchange refund accept the possibility of cash theft is reduced , customers for maintaining opt for other(a) storehouse merchandise instead of a cash refund hence less revenue loss reduction in returns as customers are more concerned in cash rather than the gift and the system will enhance cash growth as opposed to the cash loss witnessed during the archetypal few weeks after the holidays . This cash can be apply for other purposes such as paid creditors or purchase spring products (Sarbanes-Oxley internal control and cash , 2002The disadvantages include sales reduction . Tightening of the return polity might discombobulate the customers after the holidays who want to return items for cash refundsTraining . A crude system comes with new operations . The customers after the holidays will request to be trained on the new system especially on how to fill out the carry for a store credit . Sales clerks will also need readying in handling the redemption of the store credit on any future purchase of merchandise . This will bushel the firm on the basis...If you want to get a mount essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay