{"id":201268,"date":"2018-09-13T22:30:03","date_gmt":"2018-09-13T22:30:03","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/13\/acct-504-case-study-2-williams-oil\/"},"modified":"2018-10-24T08:56:43","modified_gmt":"2018-10-24T08:56:43","slug":"acct-504-case-study-2-williams-oil","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/acct-504-case-study-2-williams-oil\/","title":{"rendered":"ACCT 504 Case Study 2 (Williams Oil)"},"content":{"rendered":"<p>Case\u00a0study\t(Learning\u00a0Objectives\u00a02,\u00a04:\u00a0Explain\u00a0the\u00a0components\u00a0of\u00a0internal\u00a0control;\u00a0evaluate\u00a0internal\u00a0controls)\u00a0Each\u00a0of\u00a0the\u00a0following\u00a0situations\u00a0reveals\u00a0an\u00a0internal\u00a0control\u00a0weakness:\tSituation\u00a0a.\u00a0In\u00a0evaluating\u00a0the\u00a0internal\u00a0control\u00a0over\u00a0inventory\u00a0for\u00a0the\u00a0Williams\u00a0Oil\u00a0Services\u00a0Company,\u00a0an\u00a0auditor\u00a0learns\u00a0that\u00a0the\u00a0warehouse\u00a0receiving\u00a0clerk\u00a0is\u00a0responsible\u00a0for\u00a0ordering\u00a0parts\u00a0for\u00a0supply\u00a0inventory\u00a0use\u00a0in\u00a0drilling\u00a0services,\u00a0counts\u00a0the\u00a0inventory\u00a0when\u00a0received\u00a0at\u00a0the\u00a0dock,\u00a0records\u00a0the\u00a0receipts\u00a0into\u00a0the\u00a0inventory\u00a0ledger,\u00a0and\u00a0takes\u00a0the\u00a0annual\u00a0inventory,\u00a0No\u00a0supervisor\u00a0reviews\u00a0the\u00a0receiving\u00a0clerks\u00a0work.\tSituation\u00a0b.\u00a0Nicole\u00a0Lopez\u00a0handles\u00a0employee\u00a0travel\u00a0and\u00a0expense\u00a0reports\u00a0for\u00a0Scott\u00a0Sales\u00a0Services.\u00a0With\u00a0the\u00a0growth\u00a0in\u00a0the\u00a0economy,\u00a0the\u00a0sales\u00a0team\u00a0began\u00a0traveling\u00a0extensively\u00a0gaining\u00a0new\u00a0business.\u00a0Because\u00a0of\u00a0the\u00a0heavy\u00a0volume,\u00a0she\u00a0no\u00a0longer\u00a0required\u00a0the\u00a0sales\u00a0team\u00a0to\u00a0provide\u00a0original\u00a0airline,\u00a0hotel,\u00a0or\u00a0car\u00a0rental\u00a0receipts.\u00a0She\u00a0told\u00a0them\u00a0to\u00a0just\u00a0keep\u00a0their\u00a0meals\u00a0under\u00a0the\u00a0$100\u00a0per\u00a0day\u00a0per\u00a0diem\u00a0and\u00a0no\u00a0receipts\u00a0were\u00a0required.\u00a0She\u00a0allowed\u00a0them\u00a0to\u00a0use\u00a0their\u00a0own\u00a0credit\u00a0cards\u00a0so\u00a0they\u00a0could\u00a0get\u00a0the\u00a0frequent\u00a0flyer\u00a0points.\u00a0She\u00a0required\u00a0them\u00a0to\u00a0turn\u00a0in\u00a0a\u00a0summary\u00a0of\u00a0the\u00a0travel\u00a0expenses\u00a0quarterly.\tSituation\u00a0c.\u00a0Michael\u00a0Jordon\u00a0is\u00a0a\u00a0new\u00a0employee\u00a0hired\u00a0from\u00a0Craigs\u00a0List\u00a0recommended\u00a0by\u00a0a\u00a0co-worker.\u00a0Mike\u00a0was\u00a0hired\u00a0as\u00a0a\u00a0Human\u00a0Resource\u00a0Assistant.\u00a0Mikes\u00a0first\u00a0day\u00a0on\u00a0the\u00a0job\u00a0he\u00a0is\u00a0told\u00a0that\u00a0he\u00a0should\u00a0follow\u00a0his\u00a0own\u00a0judgments\u00a0when\u00a0deciding\u00a0how\u00a0employee\u00a0issues\u00a0such\u00a0as\u00a0hiring\u00a0and\u00a0firing\u00a0of\u00a0employees,\u00a0sexual\u00a0harassment,\u00a0and\u00a0ethical\u00a0infractions\u00a0should\u00a0be\u00a0handled.\tTop\u00a0of\u00a0Form\t?\u00a0Requirements\t1.\u00a0Identify\u00a0the\u00a0missing\u00a0internal\u00a0control\u00a0characteristic\u00a0in\u00a0each\u00a0situation.\t2.\u00a0Identify\u00a0each\u00a0firms\u00a0possible\u00a0problem.\t3.\u00a0Propose\u00a0a\u00a0solution\u00a0to\u00a0the\u00a0problem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case\u00a0study (Learning\u00a0Objectives\u00a02,\u00a04:\u00a0Explain\u00a0the\u00a0components\u00a0of\u00a0internal\u00a0control;\u00a0evaluate\u00a0internal\u00a0controls)\u00a0Each\u00a0of\u00a0the\u00a0following\u00a0situations\u00a0reveals\u00a0an\u00a0internal\u00a0control\u00a0weakness: Situation\u00a0a.\u00a0In\u00a0evaluating\u00a0the\u00a0internal\u00a0control\u00a0over\u00a0inventory\u00a0for\u00a0the\u00a0Williams\u00a0Oil\u00a0Services\u00a0Company,\u00a0an\u00a0auditor\u00a0learns\u00a0that\u00a0the\u00a0warehouse\u00a0receiving\u00a0clerk\u00a0is\u00a0responsible\u00a0for\u00a0ordering\u00a0parts\u00a0for\u00a0supply\u00a0inventory\u00a0use\u00a0in\u00a0drilling\u00a0services,\u00a0counts\u00a0the\u00a0inventory\u00a0when\u00a0received\u00a0at\u00a0the\u00a0dock,\u00a0records\u00a0the\u00a0receipts\u00a0into\u00a0the\u00a0inventory\u00a0ledger,\u00a0and\u00a0takes\u00a0the\u00a0annual\u00a0inventory,\u00a0No\u00a0supervisor\u00a0reviews\u00a0the\u00a0receiving\u00a0clerks\u00a0work. Situation\u00a0b.\u00a0Nicole\u00a0Lopez\u00a0handles\u00a0employee\u00a0travel\u00a0and\u00a0expense\u00a0reports\u00a0for\u00a0Scott\u00a0Sales\u00a0Services.\u00a0With\u00a0the\u00a0growth\u00a0in\u00a0the\u00a0economy,\u00a0the\u00a0sales\u00a0team\u00a0began\u00a0traveling\u00a0extensively\u00a0gaining\u00a0new\u00a0business.\u00a0Because\u00a0of\u00a0the\u00a0heavy\u00a0volume,\u00a0she\u00a0no\u00a0longer\u00a0required\u00a0the\u00a0sales\u00a0team\u00a0to\u00a0provide\u00a0original\u00a0airline,\u00a0hotel,\u00a0or\u00a0car\u00a0rental\u00a0receipts.\u00a0She\u00a0told\u00a0them\u00a0to\u00a0just\u00a0keep\u00a0their\u00a0meals\u00a0under\u00a0the\u00a0$100\u00a0per\u00a0day\u00a0per\u00a0diem\u00a0and\u00a0no\u00a0receipts\u00a0were\u00a0required.\u00a0She\u00a0allowed\u00a0them\u00a0to\u00a0use\u00a0their\u00a0own\u00a0credit\u00a0cards\u00a0so\u00a0they\u00a0could\u00a0get\u00a0the\u00a0frequent\u00a0flyer\u00a0points.\u00a0She\u00a0required\u00a0them\u00a0to\u00a0turn\u00a0in\u00a0a\u00a0summary\u00a0of\u00a0the\u00a0travel\u00a0expenses\u00a0quarterly. Situation\u00a0c.\u00a0Michael\u00a0Jordon\u00a0is\u00a0a\u00a0new\u00a0employee\u00a0hired\u00a0from\u00a0Craigs\u00a0List\u00a0recommended\u00a0by\u00a0a\u00a0co-worker.\u00a0Mike\u00a0was\u00a0hired\u00a0as\u00a0a\u00a0Human\u00a0Resource\u00a0Assistant.\u00a0Mikes\u00a0first\u00a0day\u00a0on\u00a0the\u00a0job\u00a0he\u00a0is\u00a0told\u00a0that\u00a0he\u00a0should\u00a0follow\u00a0his\u00a0own\u00a0judgments\u00a0when\u00a0deciding\u00a0how\u00a0employee\u00a0issues\u00a0such\u00a0as\u00a0hiring\u00a0and\u00a0firing\u00a0of\u00a0employees,\u00a0sexual\u00a0harassment,\u00a0and\u00a0ethical\u00a0infractions\u00a0should\u00a0be\u00a0handled. Top\u00a0of\u00a0Form ?\u00a0Requirements 1.\u00a0Identify\u00a0the\u00a0missing\u00a0internal\u00a0control\u00a0characteristic\u00a0in\u00a0each\u00a0situation. 2.\u00a0Identify\u00a0each\u00a0firms\u00a0possible\u00a0problem. 3.\u00a0Propose\u00a0a\u00a0solution\u00a0to\u00a0the\u00a0problem.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201268","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201268"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201268\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}