aging partner. All four clerical employees perform their tasks on PCs that are connected through a local area network. Each PC is accessible with a password that is known only to the individual employee and the managing partner. Southwest uses a standard software package that was acquired from a software company and that cannot be modified by Southwest's employees. None of the clerical employees are able to write checks on the company's account. For each of the following conditions, indicate whether they represent an internal control "strength" or "deficiency." If the condition is not an internal strength or deficiency, respond that the condition is "neither." Conditions a. Computer software cannot be modified by Southwest's employees. The office manager approves the extension of credit to patients and also approves the write-offs of uncollectible patient b. receivables. Prenumbered service slips are accounted for on a monthly basis by the outside accountant, who is independent of the C. revenue-generating and revenue-recording functions. d. Clerk #2 maintains the accounts receivable records and can add or delete information on the PC. Computer passwords are only known to the individual employees and the managing partner, who has no duties in the revenue-recording functions. е.
aging partner. All four clerical employees perform their tasks on PCs that are connected through a local area network. Each PC is accessible with a password that is known only to the individual employee and the managing partner. Southwest uses a standard software package that was acquired from a software company and that cannot be modified by Southwest's employees. None of the clerical employees are able to write checks on the company's account. For each of the following conditions, indicate whether they represent an internal control "strength" or "deficiency." If the condition is not an internal strength or deficiency, respond that the condition is "neither." Conditions a. Computer software cannot be modified by Southwest's employees. The office manager approves the extension of credit to patients and also approves the write-offs of uncollectible patient b. receivables. Prenumbered service slips are accounted for on a monthly basis by the outside accountant, who is independent of the C. revenue-generating and revenue-recording functions. d. Clerk #2 maintains the accounts receivable records and can add or delete information on the PC. Computer passwords are only known to the individual employees and the managing partner, who has no duties in the revenue-recording functions. е.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:y to the physiclan who is the managing partner.
10
All four clerical employees perform their tasks on PCs that are connected through a local area network. Each PC is accessible with a
password that is known only to the individual employee and the managing partner. Southwest uses a standard software package that
was acquired from a software company and that cannot be modifled by Southwest's employees. None of the clerical employees are
able to write checks on the company's account.
For each of the following conditions, indicate whether they represent an internal control "strength" or "deficiency." If the condition is
not an internal strength or deficiency, respond that the condition is "neither."
02:15:41
Conditions
a.
Computer software cannot be modified by Southwest's employees.
The office manager approves the extension of credit to patients and also approves the write-offs of uncollectible patient
b.
receivables.
Prenumbered service slips are accounted for on a monthly basis by the outside accountant, who is independent of the
C.
revenue-generating and revenue-recording functions.
d.
Clerk #2 maintains the accounts receivable records and can add or delete information on the PC.
Computer passwords are only known to the individual employees and the managing partner, who has no duties in the
revenue-recording functions.
e.
f.
Cash collection is centralized in that clerk #2 receives the cash (checks) from patients and records the cash receipt.
The physician who renders the medical services documents the services on a prenumbered slip that is used for recording
g.
revenue and as a receipt for the patient.
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