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You are required to complete all questions, in the same sequence as listed below, and submit all necessary workings. Follow the assignment requirements (refer below to the Requirements section above) very closely.

Content assessed
Topic 5, 6, 7, 8, 9, and 10: internal control and cash, introduction to management accounting, cost-volume-profit analysis, relevant information and special decisions, budgeting, capital budgeting.

Question 1 Internal Control
See Reading 5 in the learning materials within Interact2.
The following situations suggest a strength or a weakness in e-commerce internal controls.
a. Netproducts sells merchandise over the Internet. Customers input their credit card information for payment.
b. Netproducts maintains employee information on the company intranet. Employees can retrieve information about annual leave, payroll deposits, and benefits, from any computer using their login information.
c. Netproducts maintains trend information about its customers, products, and pricing on the
company’s intranet.
d. Tax identification numbers for all vendors are maintained in Netproduct’s database.

Requirement
Identify the controls that will best protect the company.

Question 2   Bank Reconciliation
A. How can the bank reconciliation be used as a control device?
B. Create a spreadsheet model to show a bank reconciliation statement. Use the Smart Touch Learning example in Reading 5 for inspiration but create your own original data. Implement all the usual spreadsheet requirements.



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