Enderle Sound, Inc. (ESI)

Enderle Sound, Inc. (ESI), is a manufacturer of stereo speaker systems. The company prepares special journals and subsidiary ledgers for its revenue, expenditures, payroll, and conversion processes. For administrative processes, however, journal vouchers are created for the related general ledger entries. Stefan Bolling is the accounting clerk who has responsibility for preparing journal vouchers.

Journal vouchers are prepared on preprinted forms; however, these forms are not prenumbered. Stefan records a sequential journal voucher number on each form that is prepared. This procedure is in place because of the large number of journal vouchers that are typically voided each period at ESI. Because of the nonrouting nature of the underlying processes, it is not unusual for a journal entry to be revised once or twice before it is actually recorded.

Journal vouchers are posted to the general ledger on a biweekly basis. Once a journal voucher has been posted, Stefan records it in a voucher log. This log is simply a chronological listing of all journal vouchers written that allows Stefan to account for the numerical sequence of vouchers.

On a bimonthly basis, Stefan reconciles the subsidiary accounts to their control accounts in the general ledger and verifies that the general ledger is in balance.


Describe the internal control strengths and weaknesses of ESI”s general ledger accounting processes. For any weaknesses, suggest an improvement.

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