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The Bread Company has done it again. In addition to the amazing Gluten Free Gluten bread, the company has added another revolutionary product to their
The Bread Company has done it again. In addition to the amazing Gluten Free Gluten bread, the company has added another revolutionary product to their lineup. This time it is a beverage. The new Double De-caffeinated Half Caff coffee served both chilled or hot (with a twist of lemon that makes it even more fabulous) is doubling the sales of the company. This new beverage is sold in stores but also in bulk directly to corporate customers who then brew the coffee on site and serve it hot (better with lemon) and chilled. To manage the new increased volume of sales, billing and accounting departments have decided to assign one employee to each of its corporate customers. This employee will be responsible for granting credit to the entity and then handling all the billing while also collecting and processing payments received. The company believes this will result in better customer service, because the entity will only have to deal with one person and that one person will be very familiar with the credit terms, billing and collections. As an auditor, a) would you agree with the company's decision on this customer management structure? If yes, why would this be a good decision? If no, why is this a bad decision? b) Would you need to change any of your audit control or substantive procedures as a result of this new process? Explain in detail why you would or would not change your approach. Be specific
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