(a)
Introduction:
The internal
The way asalesclerk may steal money from cash register using the store's return policy.
(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.
(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).
(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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Chapter 5 Solutions
Survey of Accounting (Accounting I)
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College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub