Answered: Separation of duties is important for…

Separation of duties is important for internal control ofa. a.cash receipts. b. cash payments. c. Neither of the above d. Both a and b

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 14CYBK

See similar textbooks

Related questions

Q: What is the purpose of the following control procedures (i.e., what threats is it designed to…

A: To protect the assets and to enhance the accuracy and reliability of its accounting records,…

Q: Which of the following assets require the strongest of internal controls?A. inventoryB. credit…

A: Internal control procedures are those techniques and procedures which are established for the…

Q: The following are the parties involved in a transaction that uses check as medium of exchange except…

A: >Checks are the financial instruments used to pay off entities though bank payments. >In a…

Q: What are the steps in approach to internal control over cash receipts that utilizes separation of…

A: Cash receipts are the payment that customer receives from the sales made. The Lock-box system is…

Q: Before revenue can be recognized, the revenue recognition principle requires the _____. A. Product…

A: Revenue is the money earned by providing services or selling goods to customers. The Revenue…

Q: Activities related to procurement and disbursements are part of the financial control process. a.…

A: Procurements involve the process of acquiring goods for sale or manufacture. Disbursements involve…

Q: type of impropriety that is hard to find is cheating that comes from: a. More transaction…

A: A transaction is an agreement between purchasers and sellers to exchange goods and services for…

Q: hich of the following assets require the strongest of internal controls…

A: Internal control is an internal mechanism to control internal working and make them efficient.

Q: Which statement is NOT correct for an expenditure system with proper internal controls?a. Cash…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Which duties should be segregated? a. matching purchase requisitions, receiving reports, and…

A: Cash Disbursement System: The cash disbursement system carries out the responsibility of…

Q: A basic procedure of internal control over cash receipts is that the deposit of the cash and the…

A: Internal controls is the procedure applicable to ensure the operational efficiency and correct…

Q: is a practice of transfering the ownership of a negotiable instrument such as a check by a payee to…

A: Discounting means where the negotiable instrument has been given to bank before due date to take…

Q: separation of duties

A: Separation of duty is the internal conttro process by which the company avoids the fraud and…

Q: 35 clerks who receive and sort the general mail. Included in the mail are envelopes containing cus-…

A: Accounts receivable can be referred to as the amount which are due from the customers of the entity…

Q: Which of the following is classified as monetary? a. Goodwill b. Equipment c. Patent d.…

A: Monetary generally means relating to money or currency. Assets that are classified as monetary…

Q: 1. An effective system of internal control requires segregation of basic functions. Which three of…

A: An Effective System of Internal Control requires segregation of basic functions. The Following three…

Q: Problem 8 Cool Ethan, an entrepreneur, was involved in an accident and was able to claim the…

A: When an employee is injured or killed on the job, the employer is obligated to compensate the…

Q: Requiring that an employee with no access to cash do the accounting is an example ofwhich…

A: Given: The example of a characteristics of an internal control.

Q: With regard to segregation of duties, rule one is that transaction authorization and transaction…

A: Answer: One of most important part of internal control is segregation of duties. It includes that…

Q: 3. Which of the following is inappropriate aggregation? A. Cash and cash equivalents (Cash on hand…

A: Ans. D Provisions (Liability from pending litigation and purchase

Q: Keeping cash locked away is an example of which control activity?

Q: 9. Which of the following is not an internal user? a. Creditor b. Department manager c. Controller…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The internal control feature specific to petty cash is A. separation of duties B. assignment of…

A: The Imprest system is basically an accounting system that's helps in tracking how your business is…

Q: Why is access control over revenue cycle documents just as important as the physical control devices…

A: Access Control: Access control is the electronic framework of an organization. They are intended to…

Q: As part of a strong internal control system, which of the following accounting duties needsto be…

A: Internal control system: It can be defined as a structure consisting of the procedures, rules, and…

Q: Internal controls associated with the purchases and cash disbursements cycle include: A…

A: An internal control system is a set of policies and processes that a company can employ to provide…

Question

Separation of duties is important for internal control ofa.

a.cash receipts.

b. cash payments.

c. Neither of the above

d. Both a and b

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition

VIEW

Step 2: Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

As part of a strong internal control system, which of the following accounting duties needsto be separated from cash handling?a. Record keepingb. Filingc. Transaction approvald. Both a and c need to be separated from cash handling.
Internal controls associated with the purchases and cash disbursements cycle include: A Separation of duties. B Adequate documentation. C Both separation of duties and adequate documentation. D Neither separation of duties nor adequate documentation.
What are the steps in approach to internal control over cash receipts that utilizes separation of duties?
Why is the separation of duties control so important with cash?
Which statement is NOT correct for an expenditure system with proper internal controls?a. Cash disbursements maintain the check register.b. Accounts payable maintains the accounts payable subsidiary ledger.c. Accounts payable is responsible for paying invoices.d. Accounts payable is responsible for authorizing invoices.
Th e assumption that the eff ects of transactions and other events are recognized when they occur, not when the cash fl ows occur, is called: A . relevance.
is a practice of transfering the ownership of a negotiable instrument such as a check by a payee to another. a. discounting b. bartering c. endorsing O d. signing
The internal control feature specific to petty cash is A. separation of duties B. assignment of responsibility C. proper authorization D. Imprest System
Which of the following items is NOT classified as a financial asset? a. promissory notes b. forward exchange contracts c. inventory d. accounts receivable
The following are the parties involved in a transaction that uses check as medium of exchange except a. Debitor b. Drawee c. Drawer
3. Which of the following is inappropriate aggregation? A. Cash and cash equivalents (Cash on hand and time deposits) B. Trade. and other receivables (Notes receivable and advances to employees) C. Trade and other payables (Notes and bonds payable) D. Provisions (Liability from pending litigation and purchase
Non-business cash receipts should be included on a cash flow statement. A. True B. False