Problem 14.2 (page 437) – Answer questions a to l. Need it
to be in APA format for the answers.
14.2. What
internal control procedure(s) would best prevent or detect the following
problems?
a. A
production order was initiated for a product that was already overstocked in
the company’s warehouse.
b. A
production employee stole items of work-in-process inventory.
c. The
“rush-order” tag on a partially completed production job became detached from
the materials and lost, resulting in a costly delay.
d. A
production employee entered a materials requisition form into the system in
order to steal $300 worth of parts from the raw materials storeroom.
e. A
production worker entering job-time data on an online terminal mistakenly
entered 3,000 instead of 300 in the “quantity-completed” field.
f. A
production worker entering job-time data on an online terminal mistakenly
posted the completion of operation 562 to production order 7569 instead of production
order 7596.
g. A parts
storeroom clerk issued parts in quantities 10% lower than those indicated on
several materials requisitions and stole the excess quantities.
h. A
production manager stole several expensive machines and covered up the loss by
submitting a form to the accounting department indicating that the missing
machines were obsolete and should be written off as worthless.
i. The
quantity-on-hand balance for a key component shows a negative balance.
j. A
factory supervisor accessed the operations list file and inflated the standards
for work completed in his department. Consequently, future performance reports
show favorable budget variances for that department.
k. A factory
supervisor wrote off a robotic assembly machine as being sold for salvage but
actually sold the machine and pocketed the proceeds.
l. Overproduction
of a slow-moving product resulted in excessive inventory that had to eventually
be marked down and sold at a loss. (Romney, 2014-01-01, p. 437)
Romney, M. B., Steinbart, P. J. (2014-01-01). Accounting
Information Systems, 13th Edition
