Week 4 Apollo Shoe Cases

Apollo Shoes Case

ACC/491 Contemporary Auditing I

September 28, 2012

1. Complete the ICQ for Apollo. For “yes” answers, add a comment stating which department and clerk performs the function. For “no” answers, describe the possible “errors” or “frauds” that could occur because of the control weakness.

2. I’ve started a flowchart and listed some strengths and weaknesses, but had to leave before I could finish it. See if you need to add any more strengths and/or weaknesses that you find from the ICQ and narrative descriptions of the revenue cycle.

Internal Control Questionnaire—Sales Transaction Processing

| |Yes, No, N/A | |

|Assertions and Questions | |Comments |

| |

|Occurrence assertion: |

| 1. Is the credit department independent of the sales |No |While there is a segregation of duties even though the credit and|

|department? | |sales departments are combined, error or fraud could occur. When |

| | |the customers pay the cashier cash and she stamps the invoice |

| | |paid, she could take the money and pocket it and not stamp the |

| | |invoice and it still appear to be outstanding even thought the |

| |...