Advice on designing internal controls


The process of producing shirts typically goes like this:

(a) Receive an order in person, over the phone or via e-mail. The order includes the number, sizes and color(s) of t-shirts as well as the artwork.

(b) Design or adapt the group's name and logo for the t-shirts.

(c) Finalize the order with the client and establish the price; receive a 50% deposit from the client.

(d) Purchase plain t-shirts.

(e) Print the t-shirts.

(f) Deliver the printed t-shirts and bill the client for the remaining 50%.

(g) Receive the payment due from the client.

Barb has asked your advice on designing internal controls for Top Notch T-Shirt Printing.

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Accounting Basics: Advice on designing internal controls
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