solution

As part of an audit engagement, you have been assigned the task of documenting the internal control system for the BrownSole Shoe Store. The business is operated by a single owner, who operates the store daily with only two additional employees who help out in everything, from stocking new shoes, to helping customers, to bill paying and accounting. The owner, Marjorie Renalwald, is a very stubborn person with little business education. She very much needs a set of audited financial statements in order to obtain a loan, but at the same time she seems very irritable and not especially interested in working with you. Your first experience with her was a 10:00 a.m. appointment with her the other day. You sat in the back of the store, in a small storage room, and waited for 1 hour while she printout by batch and employee number is produced, which indicates batches that do not balance and invalid employee numbers. This printout is returned to payroll accounting to resolve all differences.