Overview Internal controls are methods and strategies used to keep information and inventory safe from theft and to easily t
Overview
Internal controls are methods and strategies used to keep information and inventory safe from theft and to easily tell if something is compromised or missing. In this assignment, you will recommend internal controls for safeguarding inventory from an accounting perspective and explain which financial statements are affected by missing inventory.
Scenario
One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.
One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last time they were in the warehouse was a week earlier, and they hadn’t noticed anything amiss.
As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse worker were gone for the day, and the delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were open, as was the door to the office area where the accountant, two customer service specialists, and the owner worked.
Knowing that you are familiar with accounting principles, they asked for your help in figuring out how to prevent this in the future.
Prompt
Based on what you have learned about internal controls, provide recommendations on what controls the business owner should put in place to prevent loss of inventory and ensure that any losses are reported immediately. Also, specify which parts of the financial statements are affected by these losses.
Specifically, you must address the following rubric criteria:
- Role of Internal Controls
Explain the role of internal controls in business settings. Also explain how not having internal controls in place may impact the accurate analysis of any wrongdoing. - Recommendations
- Recommend at least two internal controls that should be put in place to prevent inventory from going “missing,” noting any assumptions you are making about the root cause of the missing products and how your recommendations will help address them.
- Recommend at least one control that should be put in place to alert the owner if something is actually missing.
- Financial Statements
If you found that two $400 HD televisions were missing, explain which financial statements you would correct and how. Be specific as to accounts and amounts.
Guidelines for Submission
Submit a 1- to 2-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
1/26/22, 9:35 PM Module Four Assignment Guidelines and Rubric – ACC-201-R3909 Financial Accounting 22EW3
https://learn.snhu.edu/d2l/le/content/957682/viewContent/16293699/View 1/3
Overview
Internal controls are methods and strategies used to keep informa�on and inventory safe from the� and to easily tell if something is compromised or missing. In this assignment, you
will recommend internal controls for safeguarding inventory from an accoun�ng perspec�ve and explain which financial statements are affected by missing inventory.
Scenario
One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.
One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last �me they were in the warehouse was a week earlier, and they hadn’t
no�ced anything amiss.
As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse worker were gone for the day, and the
delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were open, as was the door to the office area where the accountant, two
customer service specialists, and the owner worked.
Knowing that you are familiar with accoun�ng principles, they asked for your help in figuring out how to prevent this in the future.
Prompt
Based on what you have learned about internal controls, provide recommenda�ons on what controls the business owner should put in place to prevent loss of inventory and ensure
that any losses are reported immediately. Also, specify which parts of the financial statements are affected by these losses.
Specifically, you must address the following rubric criteria:
Role of Internal Controls
Explain the role of internal controls in business se�ngs. Also explain how not having internal controls in place may impact the accurate analysis of any wrongdoing.
Recommenda�ons
Recommend at least two internal controls that should be put in place to prevent inventory from going “missing,” no�ng any assump�ons you are making about the root
cause of the missing products and how your recommenda�ons will help address them.
Recommend at least one control that should be put in place to alert the owner if something is actually missing.
Financial Statements
If you found that two $400 HD televisions were missing, explain which financial statements you would correct and how. Be specific as to accounts and amounts.
Guidelines for Submission
Submit a 1- to 2-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
Module Four Assignment Rubric
Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
1/26/22, 9:35 PM Module Four Assignment Guidelines and Rubric – ACC-201-R3909 Financial Accounting 22EW3
https://learn.snhu.edu/d2l/le/content/957682/viewContent/16293699/View 2/3
Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Role of Internal Controls Exceeds proficiency in an
excep�onally clear, insigh�ul,
sophis�cated, or crea�ve
manner
Explains the role of internal
controls in business se�ngs
and how not having internal
controls in place may impact
the accurate analysis of
wrongdoing
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include not
fully explaining how a lack of
internal controls may impact
the accurate analysis of
wrongdoing
Does not a�empt criterion 20
Recommenda�ons Exceeds proficiency in an
excep�onally clear, insigh�ul,
sophis�cated, or crea�ve
manner
Recommends at least two
internal controls that should
be put in place to prevent
inventory from going
“missing,” no�ng any
assump�ons about the root
cause of the missing products
and how the
recommenda�ons will help
address them; recommends at
least one control that should
be put in place to alert the
owner if something is actually
missing
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
recommending only one
internal control to prevent
inventory from going missing,
not including assump�ons
about the root cause of the
missing products and
recommenda�ons to address
them, not recommending an
internal control to alert the
owner if something goes
missing
Does not a�empt criterion 40
Financial Statements Exceeds proficiency in an
excep�onally clear, insigh�ul,
sophis�cated, or crea�ve
manner
Explains which financial
statements would need
correc�on and how; specifies
accounts and amounts
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
providing only par�al
explana�on of some financial
statements that would need
correc�on, not specifying the
correct accounts and amounts
Does not a�empt criterion 20
1/26/22, 9:35 PM Module Four Assignment Guidelines and Rubric – ACC-201-R3909 Financial Accounting 22EW3
https://learn.snhu.edu/d2l/le/content/957682/viewContent/16293699/View 3/3
Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Ar�cula�on of Response Exceeds proficiency in an
excep�onally clear, insigh�ul,
sophis�cated, or crea�ve
manner
Clearly conveys meaning with
correct grammar, sentence
structure, and spelling,
demonstra�ng an
understanding of audience
and purpose
Shows progress toward
proficiency, but with errors in
grammar, sentence structure,
and spelling, nega�vely
impac�ng readability
Submission has cri�cal errors
in grammar, sentence
structure, and spelling,
preven�ng understanding of
ideas
15
Cita�ons and A�ribu�ons Uses cita�ons for ideas
requiring a�ribu�on, with few
or no minor errors
Uses cita�ons for ideas
requiring a�ribu�on, with
consistent minor errors
Uses cita�ons for ideas
requiring a�ribu�on, with
major errors
Does not use cita�ons for
ideas requiring a�ribu�on
5
Total: 100%
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