Use COSO's Internal Control Framework to Develop an Internal Control

question 52

Essay

Use COSO's internal control framework to develop an internal control plan for Homemade Craft Company based on the following narrative.Focus your plan on internal controls for the sales/collection process.Homemade Crafts Company (HCC) sells collectible items such as dolls, jewelry, drink coasters and table linens.The company, which has five full-time employees, obtains its merchandise from independent contractors throughout the United States; they then mark up the products and sell them at craft stores and other outlets.Two of the five employees interact with the independent contractors, arranging inventory purchases based on demand for HCC's products and their own personal preferences.Those same employees use their personal vehicles to transport the inventory from HCC's main office to the retail locations where they will be sold.A third employee serves as the company's receptionist, while the fourth manages all aspects of the accounting information system.The company president is the fifth employee, and is in charge of administrative affairs such as hiring, performance evaluation and publicity.HCC purchases its entire inventory on account from the independent contractors, some of whom offer cash discount terms for early payment.All HCC's sales are for cash; each inventory item is marked up 25% on its cost to determine the selling price.For example, if a product costs $100 to buy, HCC sells it for $125.The two sales employees bring all cash receipts back to HCC's main office; the receptionist deposits the cash in the bank at least once a week.

Comprehend the role of mental structures in Piaget's theory and how they adapt to incorporate new information.

Critically evaluate the limitations and criticisms of Erikson's and Piaget's developmental theories.

Understand the role of environmental context in cognitive development.

Grasp Vygotsky's concept of scaffolding and the Zone of Proximal Development.

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Definitions:

Nonstandard Job Opportunities

Employment positions that differ from traditional or regular jobs in terms of hours, benefits, or contracts.

Social Needs

Fundamental human requirements for belonging and interpersonal connection within a society or community.

Interpersonal Skills

Abilities used to effectively communicate, interact, and work with individuals and groups through empathy, listening, and conflict resolution.

Interpersonal Relationships

The connections and interactions between two or more people, which can vary in closeness and significance.