Which of the following is true of internal control? One of the major purposes of internal control is to ensure that the assets are safeguarded. O O . Internal controls are only necessary for beings living on other planets. None of these One of the major purposes of internal control is to ensure employees steal just enough from the company to keep moral high

Which of the following is true of internal control? One of the major purposes of internal control is to ensure that the assets are safeguarded. O O . Internal controls are only necessary for beings living on other planets. None of these One of the major purposes of internal control is to ensure employees steal just enough from the company to keep moral high

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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Imurlal LUnTUI amu give an example of each principle that you might observe when picking up your pizza. (Note: It may not be possible to observe all the principles.) E7-3 The following control procedures are used in Keaton Company for over-the-counter cash receipts. List oVE im 1. Each store manager is responeible for interviewing applicants for cashier jobs. They are hired if they seem honest and trastworthy. 2. All over-the-counter receipts are regisiered by three clerks who share a cash register with a single cash drawer. 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked brief- case in the stock room until it is deposited in the bank. 4. At the end of each day, the total receipts are counted by the cashier on duty and rec- onciled to the cash register total. 5. The company accountant makes the bank deposit and then records the day's receipts. (L
Your business may be at risk if: Select one: a. All of these b. An important contract does not technically exist due to flaws in its creation c. An important contract is not properly designed or legally "created" d. You cannot enlist the help of the courts to enforce an important contract because it does not actually exist in law e. You have no legal recourse because you have no contract with a business which decides to abandon its deal with your company.
Answer the following based on the image of the scenario A-Help management understand the issue from Jack’s perspective. Describe the ethical dilemma that Jack faces. What is the issue? Who are the parties involved? If you were Jack, what would you consider when making a decision? B-Help management understand the elements of the fraud triangle in this situation which increase the chances of fraud. Why is this fraud? What are the opportunities, motivations and rationalizations that you see? How does this affect the business financially? C-Help management come up with a plan to minimize the likelihood of this happening in the future. Be sure to mention specific components of the COSO framework.
The management of an organisation with a remote workforce is concerned that employees are clocking on for others who are not actually at work. What controls would reduce this risk?
Controls over data management systems fall into two categories: access controls and backup controls. In the shared database environment, access control risks include corruption, theft, misuse, and destruction of data. These threats originate from both unauthorized intruders and authorized users who exceed their access privileges. Which of the following options is not part of controls over data management systems? a. Employees that sharing the same computers need restriction for access to specific directories, programs, and data files by using multilevel password control.b. To recover data from disaster, organizations must implement policies and procedures and routinely provide backup copies of critical files.c. Database Administrator works closely with users and systems designers has primary responsibility for user view design and works closely with users and systems designers.d. Access to confidential data must be properly managed. Inference controls prevent users from inferring,…
The quality of the environment in which internal control operates has a pervasive effect on many assertions. TRUE OR FALSE? WHY?
Which of the following reflects a weak internal control system? Please explain with full explanation. a. All employees are well supervised. b. A single employee is responsible for comparing a receiving report to an invoice. c. All employees must take their vacations. d. A single employee is responsible for collecting and recording cash.
Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?
Piracy, however, is the direct copy of a company’s product and is unethical. Piracy is most prevalent in the video, music, perfume, and designer clothing industries, and is not a replacement for new-product development. Think about and discuss: Does the AMA Statement of Ethics address this issue? Go to ama.org/codesofconduct and review the statement. Then write a paragraph on what the AMA Statement of Ethics contains that might relate to knock-off products.
Which preventive, detective, and/or corrective controls would best mitigate the following threat, and why? (i)To facilitate working from home, an employee installed a modem on his office workstation. An attacker successfully penetrated the company’s system by dialing into that modem.
E7-3 The following control procedures are used in Keaton Company for over-the-counter cash receipts. 1. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked brief- case in the stock room until it is deposited in the bank. 4. At the end of each day, the total receipts are counted by the cashier on duty and rec- onciled to the cash register total. 5. The company accountant makes the bank deposit and then records the day's receipts. i o br 00
Which one of the following is not included in the control environment? Question 17Answer a. Organizational Structure b. Integrity & Ethical values c. Competence of Personnel d. External Auditor