What are the risks that are caused by the following combination of tasks? - The warehouse clerk who has custodial responsibility over inventory in the warehouse, updates the inventory subsidiary ledger and prepares an inventory summary for the general ledger department. - The billing clerk bills customers and records sales in the sales journal.

Q: What error conditions need to be addressed? (What is an error condition?) For each, what do you…

A: Auditor is the independent professional who is CPA certified and has immense knowledge about the…

Q: Match the conditions for internal control to each of the policies listed

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Q: Describe how the auditor documents the sales and despatch system for his audit file

A: The sale and dispatch system is the internal system of any entity for the distribution of the…

Q: Consider the following short case as you respond to the question: SPC Corporation sells computer…

A: Answer:-  Internal controls definition:- Internal controls are basically rules, regulations and…

Q: Describe at least 3 needed internal control improvements.

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives…

Q: Describe the purpose of a purchase order by selecting the correct statement(s) below. (Check all…

A: The correct statements are:A purchase order is a document the purchasing department uses to place an…

Q: You are working on the audit of Frozen Fresh Ltd and have just completed an evaluation of controls…

A: For prevention of fraud, theft, and manipulation of records, control over the internal…

Q: An effective revenue security system will help you accomplish the following important tasks: a)…

A: Revenue security refers to the procedure by which a company may match the total amount of sales with…

Q: he company XYZ suffers from numerous weaknesses in its internal control  system.  For each the below…

A: We are provided with various transactions on the basis of that, we need to check whether the…

Q: Which of the following internal controls is the most effective in preventing employees from using…

A: Internal controls are those procedures which are implemented for achievement of objectives of…

Q: Management and auditor are concerned about inventory control function in automated system? Why? How…

A: Inventory control function in automated system :                   In automated system, inventory is…

Q: the following is an alternative method of recording and keeping receipt of goods? Electronic…

A: Alternative Methods of Recording the Receipt of Goods  are many types.

Q: "In order to determine whether internal control operated effectively to minimize errors of failure…

A: Internal control is a procedure that is aimed to offer reasonable confidence that information is…

Q: . A threat to the expenditure cycle that involves an employee creating and approving fictitious…

A: The type of fraud can be difficult to detect, as the employee may take steps to cover their tracks…

Q: The following are examples of audit procedures:   Watch employees count inventory to determine…

A: Audit evidence is a critical component of the audit documentation process. It refers to the…

Q: Which of the following would not be a control in a sales system? a. Agreeing details from the sales…

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Q: ou have just been engaged as the auditor for Asempa Company Ltd. During your first audit as the…

A: Internal control :           To prevent fraud and misrepresentation of financial statements, the…

Q: Which of the following will be the most appropriate test to determine wherether purchase orders are…

A: Purchase order: Purchase order is a document send by a buyer to seller indicating all the…

Q: Determine whether each cash receipts procedure is an internal control strength or weakness. Cash…

A: It is a process implemented by organizations to provide reasonable assurance of achieving their…

Q: 1. An example of a detective control in the expenditure cycle is: A. Requiring dual signatures for…

A: Effective controls are critical in the expenditure cycle to ensure that transactions are properly…

Q: You are the audit senior assigned to the audit of Fix-IT Ltd, a motor vehicle spares company.You…

A: Access refers to the ability or permission to interact with or use something, typically in the…

Q: ent manages the physical goods inventory in the warehouse and he also maintains the accounting…

A: Internal control means the doing of work in an enterprises and related tight control so that chances…

Q: nvoices, and the AR department posts to the customers’ accounts. B The sales department approves…

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Q: Under a system of good internal control, which of the following departments issues a voucher?…

A: Under a good internal control system, the main department in the business organizations are:…

Q: Which internal control activity is being violated when the cashier in a retail store also records…

A: Segregation of duties is being violated when the cashier in a retail store also records the daily…

Q: Paul Williams recently joined XYZ2 Limited as the head of the accounting department. Williams spent…

A: Audit involves an independent examination of financial records with a view to provide an opinion on…

Q: Which of the following best represents a key control for ensuring sales are properlyauthorized when…

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Q: Which preventive, detective, and/or corrective controls would best mitigate the following threat,…

A: The preventive controls made the management follow up procedures that protect the control system…