The internal audit function of ABC Company Limited has identified the following conditions in the company's internal control system.<\/p>
1. There are occasional discrepancies between physical inventory counts and perpetual inventory records.<\/p>
2. There are many customer refunds and credits.<\/p>
3. Many original documents are missing or lost. However, there are substitute copies of all missing originals.<\/p>
4. Fixed asset disposals are sold at favourable prices to some employees or outsiders.<\/p>
<\/p>
Required:<\/p>
a. Describe and evaluate the possible causes of each condition. <\/p>
b. Discuss and explain the recommended controls to be implemented that would correct each of the conditions<\/p>
c. Classify each of your recommended controls in accordance with the COSO framework (authorization, segregation of duties, supervision, and so on).<\/p>", "transcribed_text": "", "related_book": { "title": "Auditing Cases An Active Learning Approach", "isbn": "0130674842, 978-0130674845", "edition": "2nd Edition", "authors": "Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/64ed8a8041add_6938.jpg", "uri": "\/textbooks\/abnormal-psychology-clinical-perspectives-on-psychological-disorders-1st-edition-9781266566899", "see_more_uri": "" }, "free_related_book": { "isbn": "0367700425", "uri": "\/textbooks\/the-economics-of-digital-transformation-1st-edition-978-0367700423-282439", "name": "The Economics Of Digital Transformation", "edition": "1st Edition" }, "question_posted": "2024-06-28 06:57:50", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/this-case-is-designed-like-the-ones-in-the-chapter-223870", "description": "This case is designed like the ones in the chapter. Your assignment is to write the audit approach portion of the case organized around these sections: Objective. 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