Question description
Case Study 2 Due by Sunday of Week 5, 11:59 p.m.,Mountain time (Learning Objectives 2, 4: Explainthe components of internal control; evaluate internal controls) Each of thefollowing situations reveals an internal control weakness: Situation a. In evaluating the internal control over inventory for theWilliams Oil Services Company, an auditor learns that the warehouse receivingclerk is responsible for ordering parts forsupply inventory use in drilling services, counts the inventory when receivedat the dock, records the receipts into the inventory ledger, and takes theannual inventory, No supervisor reviewsthe receiving clerk’s work. Situation b. Nicole Lopez handles employee travel and expense reportsfor Scott Sales Services. With the growth in the economy, the sales team begantraveling extensively gaining new business. Because of the heavy volume, she no longer required the sales team toprovide original airline, hotel, or car rental receipts. She told them to just keep their meals underthe $100 per day per diem and no receipts were required. She allowed them touse their own credit cards so they could get the frequent flyer points. Sherequired them to turn in a summary of the travel expenses quarterly. Situation c. Michael Jordon is a new employee hired from Craig’s Listrecommended by a co-worker. Mike washired as a Human Resource Assistant. Mike’s first day on the job he is toldthat he should follow his own judgments when deciding how employee issues suchas hiring and firing of employees, sexual harassment, and ethical infractionsshould be handled. Top of Form ▸Requirements 1. Identify the missing internal control characteristic in each situation. 2. Identify each firm’s possible problem. 3. Propose a solution to the problem. Bottom of Form Category Points Description Understanding 10 Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem. Analysis 30 Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem. Execution 10 Homework help – Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly. Total 50 A quality paper will meet or exceed all of the above requirements.
