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Please answer number 10 only

Please answer number 10 only

FINANCIAL ACCOUNTING
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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Please answer number 10 only. Full instructions below the table. Thank you!
Exercise 2 Several controls currently used at the Ayuyao Inn are listed below: Preventive/ Accounting/ Detective Control Administrative 1. The employee time clock is located just outside the manager's office. 2. The Ayuyao Inn uses a cash register. 3. Only the front office supervisor may approve room sales allowance. 4.An external auditor conducts a surprise cash audit quarterly. 5. Cash drawers must be closed after each sale in all revenue centers. 6. Supplier invoices are reconciled to the suppliers' monthly statements. 7. Vegetables are stored in coolers at the temperatures. 8. Cash receipts are deposited intact and on a daily basis. proper 9. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 10. The internal auditor prepares the monthly bank reconciliation. Required: 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. 2. If you believe a given control may be both P and D or AC and AD, provide your reasoning.
Transcribed Image Text:Exercise 2 Several controls currently used at the Ayuyao Inn are listed below: Preventive/ Accounting/ Detective Control Administrative 1. The employee time clock is located just outside the manager's office. 2. The Ayuyao Inn uses a cash register. 3. Only the front office supervisor may approve room sales allowance. 4.An external auditor conducts a surprise cash audit quarterly. 5. Cash drawers must be closed after each sale in all revenue centers. 6. Supplier invoices are reconciled to the suppliers' monthly statements. 7. Vegetables are stored in coolers at the temperatures. 8. Cash receipts are deposited intact and on a daily basis. proper 9. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 10. The internal auditor prepares the monthly bank reconciliation. Required: 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. 2. If you believe a given control may be both P and D or AC and AD, provide your reasoning.
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