Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 18RQSC
To determine
Introduction: The internal control refers to the process where internal auditor and management assesses the organizationto ensure its operational efficiency, reporting reliability and compliance. Control can be of two types: preventive control and detective control.
To define: The type of control error and suggested control activity for such errors.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Please give me true answer this financial accounting question
Solve this following requirements on these general accounting question
What is the coat of the merchandise assuming the discount is taken on these financial accounting question?
Chapter 3 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 3 - Prob. 1CYBKCh. 3 - Prob. 2CYBKCh. 3 - Which of the following are affected by the quality...Ch. 3 - Prob. 4CYBKCh. 3 - Prob. 5CYBKCh. 3 - Prob. 6CYBKCh. 3 - What are the components of internal control per...Ch. 3 - Prob. 8CYBKCh. 3 - Prob. 9CYBKCh. 3 - The control environment is seen as the foundation...
Ch. 3 - Prob. 11CYBKCh. 3 - Which one of the following components of internal...Ch. 3 - Prob. 13CYBKCh. 3 - Prob. 14CYBKCh. 3 - Prob. 15CYBKCh. 3 - Prob. 16CYBKCh. 3 - Prob. 17CYBKCh. 3 - Prob. 18CYBKCh. 3 - Prob. 19CYBKCh. 3 - Prob. 20CYBKCh. 3 - Prob. 21CYBKCh. 3 - Prob. 22CYBKCh. 3 - Prob. 23CYBKCh. 3 - Prob. 24CYBKCh. 3 - Prob. 25CYBKCh. 3 - Prob. 26CYBKCh. 3 - Prob. 27CYBKCh. 3 - Prob. 28CYBKCh. 3 - Prob. 29CYBKCh. 3 - Prob. 30CYBKCh. 3 - Prob. 31CYBKCh. 3 - Prob. 32CYBKCh. 3 - Prob. 33CYBKCh. 3 - Prob. 34CYBKCh. 3 - Prob. 35CYBKCh. 3 - Prob. 36CYBKCh. 3 - Prob. 37CYBKCh. 3 - Prob. 38CYBKCh. 3 - Prob. 39CYBKCh. 3 - Prob. 40CYBKCh. 3 - Prob. 1RQSCCh. 3 - Prob. 2RQSCCh. 3 - Prob. 3RQSCCh. 3 - Prob. 4RQSCCh. 3 - Distinguish between entity-wide and transaction...Ch. 3 - Refer to Exhibit 3.2. List the principles...Ch. 3 - Prob. 7RQSCCh. 3 - Prob. 8RQSCCh. 3 - Prob. 9RQSCCh. 3 - Prob. 10RQSCCh. 3 - Refer to Exhibit 3.3. For each risk assessment...Ch. 3 - Prob. 12RQSCCh. 3 - Prob. 13RQSCCh. 3 - Prob. 14RQSCCh. 3 - Prob. 15RQSCCh. 3 - Prob. 16RQSCCh. 3 - Prob. 17RQSCCh. 3 - Prob. 18RQSCCh. 3 - Authorization of transactions is a key control in...Ch. 3 - Prob. 20RQSCCh. 3 - Prob. 21RQSCCh. 3 - Prob. 22RQSCCh. 3 - Prob. 23RQSCCh. 3 - Prob. 24RQSCCh. 3 - Prob. 25RQSCCh. 3 - Prob. 26RQSCCh. 3 - Prob. 27RQSCCh. 3 - Prob. 28RQSCCh. 3 - Refer to Exhibit 3.9. What are the important...Ch. 3 - Refer to Exhibit 3.10 and Exhibit 3.11. Describe...Ch. 3 - Prob. 31RQSCCh. 3 - Prob. 32RQSCCh. 3 - Prob. 33RQSCCh. 3 - Prob. 34RQSCCh. 3 - Assume that management is gathering evidence as...Ch. 3 - Prob. 36RQSCCh. 3 - Prob. 37RQSCCh. 3 - Prob. 38RQSCCh. 3 - Prob. 39RQSCCh. 3 - Prob. 40RQSCCh. 3 - Prob. 39FFCh. 3 - Diamond Foods, Inc. (LO 8, 9) In February 2012,...
Knowledge Booster
Similar questions
- How many direct labor hours were estimated for the year on these general accounting question?arrow_forwardYou have been asked by the owner of your company to advise her on the process of purchasing some expensive long-term equipment for your company. • Give a discussion of the different methods she might use to make this capital investment decision. • Explain each method and its strengths and weaknesses. • Indicate which method you would prefer to use and why.arrow_forwardWhat is the value of Stockholders' equity at the end of the year on these financial accounting question?arrow_forward
- Record the following journal entries for Young Company: (Click the icon to view the transactions.) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) 6. Purchased raw materials on account, $5,000. Date 6. Accounts Payable Accounts and Explanation Debit Credit Accounts Receivable Cash Cost of Goods Sold Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Sales Revenues Wages Payable Work-in-Process Inventory More info 6. Purchased materials on account, $5,000. 7. Used $2,000 in direct materials and $700 in indirect materials in production. 8. Incurred $9,000 in labor costs, of which 60% was direct labor. Print Done - Xarrow_forwardThe following information pertains to Miller Company for the year (Click the icon to view the information.) 13. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base 14. Determine the amount of overhead allocated during the year. Record the journal entry. 15. Determine the amount of underallocated or overallocated overhead. Record the journal entry to adjust Manufacturing Overhead. Data table 13. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base Estimated overhead cost $ 420,000 Estimated direct labor hours 12,000 Predetermined overhead allocation rate Estimated manufacturing overhead Estimated direct labor hours $420,000 Actual manufacturing overhead 12,000 hours Actual direct labor hours $500,000 12,650 hours 35 per direct labor hour 14. Determine the amount of overhead allocated during the year. Record the journal entry. Predetermined overhead allocation rate 35 Actual direct labor…arrow_forwardProblem 3-5B Applying the accounting cycle P1 P3 P4 P5 P6 On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the company's first month. July 2 Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock. 3 5 10. 14. 24. 28. 29. 30. 31 The company rented equipment by paying $2,000 cash for the first month's (July) rent. The company purchased $2,400 of office supplies for cash. The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11. The company paid an employee $1,000 cash for two weeks' salary earned. The company collected $9,800 cash for storage revenue from customers. The company paid $1,000 cash for two weeks' salary earned by an employee. The company paid $950 cash for minor repairs to buildings. The company paid $400 cash for this month's telephone bill. The company paid $2,000 cash in dividends. The company's chart of accounts follows:…arrow_forward
- Whats a good response and question to this post? Choosing Canada to grow a business and would be a great idea do to the same similarities that the United States has within their politics, legal system, and their economics POLITICS Even though Canada is ruled by a monarchy the legislature and monarchy still work together, making very similar to the US government.The Canadian government also has a constitution that states “system of fundamental laws and principles that outline the nature, functions, and limits of Canada’s system of government, both federal and provincial”.Canada has a reputation of having a very welcoming business platform throughout their politics. Legal System Canada's legal system used both civil and common law based on French and English laws.These ideas were brought to them in the 17th century by the columnist.Canada is one of the only countries that has common law and civil law at the same stature. Throughout Canada everyone from common people to government…arrow_forwardWhat is a good response to this post? The Hofstede Country Comparison tool provides an analytical framework for comprehending cultural subtleties via variables such as power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The comparison of Russia, China, and the United States unveils unique cultural landscapes. The United States exhibits a low Power Distance score of 40, indicating a social inclination towards equality and dispersed power systems. This starkly contrasts with Russia's score of 93, which signifies a strong acceptance of hierarchical order, and China's score of 80, where power is similarly consolidated, demonstrating a society that prioritizes authority and hierarchy. The United States gets 91 in individualism, highlighting the importance of personal rights and accomplishments. Russia, scoring 39 and China, scoring 20, exhibit a collectivist inclination where group allegiance and communal interests frequently take…arrow_forwardWhats a good response to this post? Comparing USA to Germany and Japan Hofstede's dimensions include Power, Distance, Individualism, Masculinity, Uncertainty Avoidance, Long-Term Orientation and Indulgence. Power: USA 40, Germany 35, Japan 54 The USA and Germany have relatively low scores, indicating a preference for equality and decentralized power structures. Japan's score suggests a more Hierarchical society with greater acceptance of unequal power distribution. IDV: USA 91, Germany 67, Japan 46 The USA scores very very high, reflecting a strong emphasis on individual rights. Germany also values IDV but to a lesser extent while Japan has the lowers store, showing more collectivism, emphasizing group harmony and loyalty. MAS, USA 62, Germany 66, Japan 95 All three have pretty high scores but Japan outranks. Indicating a strong focus on competition, achievement and success. UAI: USA 46, Germany 65, Japan 92 The USA has a low score, suggesting a higher tolerance for ambiguity and…arrow_forward
- Whats a good response and question to ask to this post? The county that I am choosing to expand to is Denmark. Below is a brief overview of their political, economic, and legal systems. Political System Denmark is a Constitutional Monarchy. Their chief of state is the Queen and their head of government is the Prime Minister. The government is broken up into three branches, the executive branch, judicial branch, and legislative branch. Economic System Denmark is a developed country with a high income. Not much is able to sway Denmark. Unlike most countries, when Covid was wreaking havoc all over the world, their economy recessed by only 2% in 2020 and continued on to jump back up by 3.8% by 2022. They also have a very low unemployment rate of only 2.7%. Legal System Denmark operates by a civil law system with roots in Germanic Law. They have a medium corruption score of 88 out of 200. Denmark has a great business perspective overall. The only part that I would question is, how would the…arrow_forwardProblem 3-2B Preparing adjusting and subsequent journal entries P1 P2 P3 P4 Natsu Company's annual accounting period ends on October 31. The following information concerns the adjusting entries that need to be recorded as of that date. Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Building; Accumulated Depreciation- Building; Salaries Payable; Unearned Revenue; Rent Revenue; Salaries Expense; Office Supplies Expense; Insurance Expense; and Depreciation Expense-Building. a. b. c. d. e. f. The Office Supplies account started the fiscal year with a $600 balance. During the fiscal year, the company purchased supplies for $4,570, which was added to the Office Supplies account. The supplies available at October 31 totaled $800. The Prepaid Insurance account had a $12,000 debit balance at October 31 before adjusting for the costs of any expired coverage for the fiscal year. An analysis of prepaid insurance shows…arrow_forwardProblem 3-1B Identifying adjusting entries with explanations P1 P2 P3 P4 For journal entries 1 through 12, indicate the explanation that most closely describes it. You can use explanations more than once. A. To record payment of a prepaid expense. B. To record this period's use of a prepaid expense. C. To record this period's depreciation expense. D. To record receipt of unearned revenue. E. To record this period's earning of prior unearned revenue. F. To record an accrued expense. G. To record payment of an accrued expense. H. To record an accrued revenue. I. To record receipt of accrued revenue. 1. Interest Receivable 3,500 7. Cash 1,500 Interest Revenue 3,500 Accounts Receivable (from services) 1,500 2. Salaries Payable 9,000 8. Salaries Expense 7,000 Cash 9,000 Salaries Payable 7,000 3. Depreciation Expense 8,000 9. Cash 1,000 Accumulated Depreciation. 8,000 Interest Receivable 1,000 4. Cash 9,000 10. Unearned Revenue 9,000 Prepaid Rent Cash 3,000 3,000 5. Insurance Expense 4,000…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning