(a) Introduction: The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security. The way asalesclerk may steal money from cash register using the store's return policy.

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Answer 1

Question

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

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Answer 2

Question

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

Answer 6

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

Answer 7

Chapter 5, Problem 5.3E

To determine

(a)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The way asalesclerk may steal money from cash register using the store's return policy.

Answer 8

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

Answer 9

To determine

(b)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To discuss:

Theweaknesses in internal control in return policy that makes stealing of cash easier.

Answer 10

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

Answer 11

To determine

(c)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

To explain:

If issuing store credit (instead of cash) for all merchandise returned without receipt reduce chance of theft. Also, discuss the pros and cons of issuing store credit (instead of cash).

Answer 12

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

Answer 13

To determine

(d)

Introduction:

The internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities which can have material effects on the financial statements. It includes five elements namely control environment, risk assessment, control procedures, monitoring and information and security.

The changes in store procedures regarding customer refunds which can improve internal control if current policy of issuing cash refund without receipt is maintained.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 5 - Prob. 1SEQ Ch. 5 - Prob. 2SEQ Ch. 5 - Prob. 3SEQ Ch. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQ Ch. 5 - Prob. 1CDQ Ch. 5 - Prob. 2CDQ Ch. 5 - Prob. 3CDQ Ch. 5 - Prob. 4CDQ Ch. 5 - Prob. 5CDQ

Solution Summary: The author explains how the internal control system of an organization provides a reasonable assurance regarding prevention or timely detection of errors or irregularities.

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