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AUE2602 Assignment 4B (COMPLETE ANSWERS) Semester 1 2024 - DUE 9 May 2024 Course Corporate Governance in Accountancy (AUE2602) Institution University Of South Africa (Unisa) Book Auditing Notes for South African Students$2.50
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AUE2602 Assignment 4B (COMPLETE ANSWERS) Semester 1 2024 - DUE 9 May 2024 Course Corporate Governance in Accountancy (AUE2602) Institution University Of South Africa (Unisa) Book Auditing Notes for South African Students
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Course
Corporate Governance in Accountancy
Institution
University Of South Africa
Book
Auditing Notes for South African Students
BubblyFizz (Pty) Ltd is a renowned soda drink manufacturing company recognised for its premium fizzy beverages. As an auditor conducting an inventory cycle audit, you have been tasked with evaluating the company’s internal controls. During a discussion with management, the following information c...
AUE2602 Assignment 4B
(COMPLETE ANSWERS)
Semester 1 2024 - DUE 9 May
2024 ;100% TRUSTED
workings, explanations
and soluti ons
ADMIN
[COMPANY NAME]
, BubblyFizz (Pty) Ltd is a renowned soda drink manufacturing company
recognised for its premium fizzy beverages. As an auditor conducting an
inventory cycle audit, you have been tasked with evaluating the company’s
internal controls. During a discussion with management, the following
information came to your attention: i. Mrs Pepsi is responsible for receiving
completed goods at the company warehouse. She checks the slip received
from the production section, compares it with the number of crates entering
the warehouse and signs it. She then updates the inventory records on the
company’s accounting system, Cloves-Accounting, by signing in with her
unique password. ii. The warehouse has four entry points, therefore entering
and exiting the warehouse are quick processes. Staff responsible for filling
orders can manage their task quickly by entering through sliding doors and
selecting the crates that they need from the shelves. iii. These staff members
then manually write down which stock they have taken from the shelves on a
list kept in the warehouse. This list is then totaled at the end of the week, and
the Cloves-Accounting system is updated accordingly.
Certainly, let's break down each aspect of the internal controls at BubblyFizz (Pty) Ltd based on
the information provided:
i. Mrs. Pepsi's Role in Receiving Completed Goods:
• Mrs. Pepsi is responsible for receiving completed goods at the company warehouse. Her
process involves checking the slip received from the production section against the
number of crates entering the warehouse and signing off on it.
• She then updates the inventory records on the company's accounting system, Cloves-
Accounting, using her unique password.
Internal Control Evaluation:
• Strengths:
• Mrs. Pepsi's role adds a layer of accountability to the receiving process as she verifies the
incoming goods against the production slips.
• Her unique password for updating inventory records provides a level of access control,
ensuring only authorized personnel can make changes to the inventory records.
• Weaknesses:
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