Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 13, Problem 5SP
a)
Summary Introduction
To determine: The risks of the given function using the given table.
Introduction:
b)
Summary Introduction
To determine: The controls and technology of the given function using the given table.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
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Students have asked these similar questions
35 clerks who receive and sort the general mail.
Included in the mail are envelopes containing cus-
tomer checks and remittance advices, which the
clerks open to verify that the checks are signed
and are constant in amount with the remittance
advice. The checks and remittance advices are orga-
nized into batches and sent to the AR department
where the AR clerk reviews them for correctness,
posts to the AR sub ledger. The clerk then prepares
two copies of a remittance list. One of these is filed
in the department along with the remittance advice
and the other is sent to the cash receipts department
with the checks.
4. SYSTEM DOCUMENTATION, RISK
ANALYSIS, AND INTERNAL
CONTROLS
Upon receipt of the checks and remittance list, the
cash receipts clerk reconciles the documents and post
the checks to the cash receipts journal. At the end of
the day, the clerk prepares a deposit slip and sends it
along with the checks to the bank, Finally, the clerk
summarizes the batch of cash receipts…
What is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)?
c. Direct deposit of paychecks.
comparing the cash balances on its bank statement with the cash balances in the accounting recordsA. Bank ConfirmationB. Bank ReconcilationProcess of identifying, evaluating and deciding how to manage the risks.A. Risk AssessmentB. Risk Management
Chapter 13 Solutions
Accounting Information Systems
Ch. 13 - Prob. 1RQCh. 13 - What primary functions does the AP/CD process...Ch. 13 - Prob. 3RQCh. 13 - What are the fundamental responsibilities of the...Ch. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - How does EDI improve the effectiveness and...Ch. 13 - What is EIPP? How does it improve the efficiency...
Ch. 13 - What are the two operations process...Ch. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 1DQCh. 13 - This chapter discusses both fraud and...Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 1SPCh. 13 - Prob. 2SPCh. 13 - Prob. 3SPCh. 13 - Prob. 4SPCh. 13 - Prob. 5SPCh. 13 - Prob. 6SPCh. 13 - Prob. 4PCh. 13 - Our narrative and DFDs are created assuming that...Ch. 13 - Prob. 6PCh. 13 - Prob. 7P
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Similar questions
- Keeping cash locked away is an example of which control activity? a. Authorization b. Performance reviews • c. Physical control d. Segregation of dutiesarrow_forwardImurlal 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. (Larrow_forwardWhich of the following is a good internal control for cash payments? A.Payments to suppliers should be made as quickly as possible B.An experienced accountant should have total responsibility for all cash payment functions. C.Payments should be authorised before they are made D.Supporting documentation should be destroyed immediately after payment to avoid incorrectly twice.arrow_forward
- Why should cash revenues and credit client sales be quickly recorded and reported?arrow_forwardThis refers to a bank that has agreement with the clearinghouse to exchange checks. A. Commercial Bank B. Correspondent Bank C. Universal Bank D. Concentration Banking 2. Firms hold cash for the purpose of taking advantage of investment opportunities. A. Precautionary Motive B. Transaction Balance C. Compensating Balance D. Speculative Motive 3. This refers to the process of monitoring and analyzing the amount of cash needed and how it can be generated. A. Cash Monitoring B. Cash Balances C. Cash Management D. Cash Forecastingarrow_forwardWhich of the following is an effective internal control for cash payments? A.Payments should be authorised before they are made B.Payments to suppliers should be made as quickly as possible C.An experienced accountant should have total responsibility for all cash payment functions D.Supporting documentation should be destroyed immediately afterpayment to avoid incorrectly paying twicearrow_forward
- Ma1. Control activities are the policies and procedures that help ensure that management directives are carried out and which are designed to prevent and detect fraud and error occurring. An example of a control activity is the maintenance of a control account. Explain any five internal control activities and describe measures of internal control you would recommend to ensure that cash receipts and resources are properly accounted for and managed.arrow_forwardInternal control is concerned with the reliability of financial information. True or Falsearrow_forwardConsider how an organization must manage cash and receivables. Which of the two is the most important to manage? Is one more susceptible to fraud and errors than the other? Explain your answer. How would a misstatement in each affect an organization?arrow_forward
- Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerj. Investments such as time deposits and certificates of deposit are . __________________arrow_forwardMatch definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerh. The _____________________is typically responsible for cash handling and cash management.arrow_forward. Provide the cash receipts and cash payments two examples which are fit into the following classifications. Operating activities. Investing activities. Financing activities.arrow_forward
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