Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 6, Problem 13DQ
To determine
Explain internal control that would prevent the acquisition of office equipment that the firm does not need.
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To guard against fraud and waste, businesses use internal controls. correct or incorrect
Which of the following is true of internal control?
A.
Internal control procedures tend to diminish the importance of operational efficiency.
B.
A company's outside auditor is responsible for the company's internal control system.
C.
Internal controls are only necessary for public companies.
D.
One of the major purposes of internal control is to ensure that the assets are safeguarded.
Which of the following are correct regarding why management uses internal controls? (Check all that apply.)
Multiple select question.
Protect assets.
Uphold company policies.
Ensure reliable accounting.
Reduce vendor payables.
Increase revenues.
Promote efficient operations.
Chapter 6 Solutions
Accounting Information Systems
Ch. 6 - Which document is used by the cost accounting...Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - Why should employee paychecks be drawn against a...Ch. 6 - Prob. 5RQCh. 6 - Prob. 6RQCh. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - Prob. 9RQCh. 6 - Prob. 10RQ
Ch. 6 - What are the objectives of a fixed asset system?Ch. 6 - How do fixed asset systems differ from purchases...Ch. 6 - What are three tasks of the fixed asset system?Ch. 6 - What information is found on the depreciation...Ch. 6 - Why is it crucial to the integrity of the...Ch. 6 - Prob. 16RQCh. 6 - Prob. 17RQCh. 6 - What document shows when fixed assets are fully...Ch. 6 - Who should authorize disposal of fixed assets?Ch. 6 - Assets used for production are secured in a...Ch. 6 - What is the importance of the job ticket?...Ch. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Discuss some specific examples in which...Ch. 6 - Discuss some service industries that may require...Ch. 6 - Prob. 7DQCh. 6 - If an asset that is not fully depreciated is sold...Ch. 6 - Discuss the fundamental risk and control issues...Ch. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Describe an internal control that would prevent...Ch. 6 - Prob. 13DQCh. 6 - What negative consequences result when fixed asset...Ch. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Which one of the following documents captures the...Ch. 6 - Which of the following are not fixed asset system...Ch. 6 - All of the following controls are likely to apply...Ch. 6 - All of the following data items are likely to be...Ch. 6 - The following are all transactions processed in...Ch. 6 - Prob. 10MCQCh. 6 - PAYROLL FRAUD John Smith worked in the stockyard...Ch. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - FIXED ASSET SYSTEM-FRAUD POTENTIAL Holder Co....Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 1ICCCh. 6 - Prob. 2ICCCh. 6 - Prob. 3ICCCh. 6 - Prob. 4ICCCh. 6 - Prob. 5ICCCh. 6 - Prob. 6ICC
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Similar questions
- Even though technology has improved the internal control structure of a company, a supervisor cannot depend totally on technology. Discuss other internal controls a supervisor needs to implement to ensure a strong structure.arrow_forwardIdentify each of the following as a (a) purpose of an internal control system, (b) principle of internalcontrol,or (c) limitation of internal control. Uphold company policiesarrow_forwardAllowing only certain employees to order goods and services for the company is an example of what internal control procedure? a.Proper authorization b.Independent verification c.Segregation of duties d.Safeguarding of assets and recordsarrow_forward
- What is the role of a corporate computer services department? How does this differ from other configurations?arrow_forwardAssume you are the manager of this area in a small firm. What internal controls and segregation of duties need to be considered in this area? What are some typical policies that companies put in place to safeguard this area? Find an example of a small company that has had issues in this area. Briefly recap the situation and how it was resolved.arrow_forwardAn Internal Control System will not Assists compliance with laws and regulations Helps ensure the reliability of internal and external reporting Help obtain an understanding of the business and the risks it faces Facilitates the effectiveness and efficiency of operationsarrow_forward
- Which of the following is true of internal control? OA. Internal controls are only necessary for large businesses. OB. A company's outside auditor is responsible for the company's internal control system. OC. Internal control procedures tend to diminish the importance of operational efficiency. OD. One of the major purposes of internal control is to ensure accurate, reliable accounting records.arrow_forwardArgentarrow_forwardWhich of the following is NOT a rule that would guide system designers in segregating duties in a firm? The Board of Directors should appoint the same individual as Chairman and CEO The organization should be structured so that the perpetration of a fraud requires collusion between two or more individuals Asset custody should be separate from the task of asset record keeping Transaction authorization should be separate from transaction processingarrow_forward
- Which one of the following is not an objective of a system of internal controls? Select one: 1. Overstate liabilities in order to be conservative 2. Enhance the accuracy and reliability of accounting records 3. Safeguard company assets 4. Reduce the risks of errorsarrow_forwardWhich of the following is not a factor that influences a business's control environment? a.organizational structure b.personnel policies c.proofs and security measures d.management's philosophy and operating stylearrow_forwardAn internal control system is made up of all rules and processes that are used to safeguard assets, assure accurate accounting, improve efficiency, and enforce compliance with business standards. Are you in agreement or disagreement with this assertion? How come or why not?arrow_forward
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