Clara and David are working on the audit of Treadway Enterprises, and are meeting to discuss the client's internal controls: specificallycontrols over the cash disbursements process. Which of the following statements most accurately describes the controls that shouldbe in place for this function?O Before payment of any cash disbursements, the appropriate authorizations should be received, and the correct dollaramounts paid.O Before the audit client proceeds with any cash disbursements, the firm should have appropriate entity-level controls inplace to ensure transactional accuracy.O As part of the cash disbursement cycle, the auditor is likely to examine a sample of receivables controls to ensure theireffectiveness.O None of these answer choices are correct.

Internal controls over the cash disbursement process are essential for safeguarding a company's…

Answered: Clara and David are working on the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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you have been engaged as a consultant for Zenith Bank Ghana LTD. Draw up a comprehensive fraud risk assessement that would incorporate a formal process of accountability and reponsibility going forward for Zenith Ghana Ltd.
GIven the situation that you are an auditor of GZ Company and you were asked to provide the following(s): a. Explain the audit objectives for the management assertion of Bank, Cash, Inventories, Revenue and Payment. b. Explain 5 Audit procedures used in the process of acquiring evidence to test the management assertion for Bank, Cash, Inventories, Revenue and Payment.
You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited the corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, (h) Some employees complained that some managers occasionally contradict the instructions of other managers regarding proper data security procedures. Identify the problems and explain them in relation to the internal environment.
As the CFO of the organization, you are currently working at, you have been charged with creating new policies and procedures with the IT department. As the CFO you currently oversee payroll, cash collections (revenue), and cash disbursements (expenses). What are some detection controls that you could put in place for those modules within a system?
Please respond promptly: When auditing a private company, the auditor should obtain an understanding of internal control sufficient to___________. Select one: a. Provide a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency, and encouraging adherence to prescribed managerial policies. b. Provide reasonable protection against client fraud and defalcations by client employees. c. Assess control risk. d. Provide a basis for suggestions to the client for improving the accounting system.
Discuss the motives of why C-Suite executives would commit fraud and how understanding the motive for fraud can assist an auditor in the analysis of financial statements. Determine if government regulations such as SOX and PCAOB are effective in reducing unethical behavior of corporate executives, and if additional organizational controls could be applied to expose and reduce fraud committed by C-Suite executives.
Whole Fruits Market took the following actions to improve internal controls. For each of the following actions, select the internal control principle the company followed. a. Personal ID cards are used to limit access to only authorized employees. b. The company divides responsibility for a transaction between multiple departments. c. Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer. d. Purchased an insurance (bonding) policy against losses from theft by a cashier. e. To ensure equipment theft does not go undetected, detailed accounting records are kept. f. The company's internal auditors frequently assess the performance of internal controls.
When auditing with “fraud awareness,” auditors should especially notice and reviewemployee activities under which of these conditions?a. The company always estimates the inventory but never takes a complete physical count.b. The petty cash box is always locked in the desk of the custodian.c. Management has published a company code of ethics and sends frequent communicationnewsletters about it.d. The board of directors reviews and approves all investment transactions
34) Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member? a) Familiarity threats b) Self-review threats c) Advocacy threats d) Self-interest threats
From pages 4-1 and 4-2 of the VLN, the COSO Framework describes 5 components of internal control. What is the purpose of internal controls from a financial accounting perspective? 1. To guarantee no fraud will occur in the organization. 2. To help safeguard the company's assets. 3. To help improve the accuracy and reliability of the accounting information. 4.To prevent collusion. Group of answer choices A. 1,2, and 3 B. 2 and 3 C. 2, 3, and 4 D.1, 2, 3, and 4

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