Discussion Activity for chapters 6 & 7

To encourage student interaction and to help students prepare for the chapters 6 & 7 test, this discussion requires students to briefly present, discuss, and comment on the material related to the chapters being completed.There are a number of different subtopics within chapters 6 & 7 such as:

• System of internal.
• Imprest cash system (i.e., petty cash fund, change fund, and postage fund.
• Accounts receivable
• Notes receivable
• Allowance for doubtful accounts
• Direct Write-off of accounts
• Bad debt estimation

Assignment Part 1:

Between March 1 (11:00 a.m.) & March 9 (midnight), you are to write a brief narrative describing a situation in a company where there are at least two internal control weaknesses. DO NOT directly identify the weaknesses at this point. In the second part of the discussion, one of your fellow students will have the opportunity to show their understanding of internal control by identifying the weaknesses implied in your narrative.

You can choose a real company, a company you work for currently or in the past, or make up a company. Before you write your narrative be sure to read about and understand the concept of internal control. Download and review the various documents provided in Canvas, including the handout on management practices that may lead to fraud and the document with a list of some of the most common internal controls.

comments should be no less than 60 words but no more than 120 words. The word count range is a guide to help you focus your comments.

To help you visualize what is being asked, below is an example narrative. Obviously, do not use any part of this narrative as your narrative.

Mrs. Minnie, a grandmother of six grandchildren, was hired as the bookkeeper for an electrical supply company after her husband became ill and she needed additional income. She wrote the checks and reconciled the bank account. In the cash disbursements journal, she coded some checks as inventory, but she wrote the checks to herself, using her own true name. An accountability of check numbers was not made by management or another employee.