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12.6. Create a questionnaire checklist that can be used to evaluate controls for each of the four basic activities in the revenue cycle (sales order entry, shipping, billing, and cash collections).

Required

For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be, “Are customer credit limits set and modified by a credit manager with no sales responsibility?”

B.For each Yes/No question, write a brief explanation of why a “No” answer represents a control weakness. (Romney 361)

13.5. Use Table 13-2 to create a questionnaire checklist that can be used to evaluate controls for each of the basic activities in the expenditure cycle (ordering goods, receiving, approving supplier invoices, and cash disbursements).

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15.3 You have been hired to evaluate the payroll system for the Skip-Rope Manufacturing Company. The company processes its payroll in-house. Use Table 15-1 as a reference to prepare a list of questions to evaluate Skip-Rope’s internal control structure as it pertains to payroll processing for its factory employees. Each question should be phrased so that it can be answered with either a yes or a no; all no answers should indicate potential internal control weaknesses. Include a third column listing the potential problem that could arise if that particular control were not in place.(CPA Exam, adapted)

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21.4 Mark Mitton, the liaison to the IS department, has eliminated all but the best three systems. Mark developed a list of required features, carefully reviewed each system, talked to other users, and interviewed appropriate systems representatives. Mark used a point-scoring system to assign weights to each requirement. Mark developed Table 21-4 to help him select the best system.

a. Use a spreadsheet to develop a point-scoring matrix and determine which system Mark should select.

b. Susan Shelton did not agree with Mark’s weightings and suggested the following changes:

c. Mark’s manager suggested the following changes to Susan’s weightings