1) The incorrect allocation of equipment in the asset register occurred because the asset manager did not exercise proper control over the receipt of the equipment. 2) No procedures were in place for monitoring the activities of employees. 3) The required ledger control accounts should be created and updated to ensure control over funds. 4) The practices of keeping duplicate records also contributed to the unnecessarily high labour and costs. 5) According to the policies of Ltd, personal computers should be depreciated over three years. 6) During the interview with operations manager, we noted that only a verbal agreement was established between the operational manager and the service provider for waste removal. 7) Consequently, the administrative costs of the department were overstated by an amount of R300 000. 8) Management should take all possible measure to ensure that all major projects are approved according to delegation of authority. 9) Non-compliance with leave management policies and procedures resulted in excessive accumulation of vacation leave. 10)Inadequate security of electronic data compromised personal information of employees resulting in reputational damage to the company. 6 REQUIRED 4.1 Based on the information in Scenario A, classify the information (1-10) according to the elements of an audit finding. (Criteria, cause, effect, condition, and recommendation)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

1) The incorrect allocation of equipment in the asset register occurred because the asset manager did not exercise proper control over the receipt of the equipment. 2) No procedures were in place for monitoring the activities of employees. 3) The required ledger control accounts should be created and updated to ensure control over funds. 4) The practices of keeping duplicate records also contributed to the unnecessarily high labour and costs. 5) According to the policies of Ltd, personal computers should be depreciated over three years. 6) During the interview with operations manager, we noted that only a verbal agreement was established between the operational manager and the service provider for waste removal. 7) Consequently, the administrative costs of the department were overstated by an amount of R300 000. 8) Management should take all possible measure to ensure that all major projects are approved according to delegation of authority. 9) Non-compliance with leave management policies and procedures resulted in excessive accumulation of vacation leave. 10)Inadequate security of electronic data compromised personal information of employees resulting in reputational damage to the company. 6 REQUIRED 4.1 Based on the information in Scenario A, classify the information (1-10) according to the elements of an audit finding. (Criteria, cause, effect, condition, and recommendation)

Expert Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Frauds in Accounting information system (AIS)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions