FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Question
Chapter 6, Problem 2E
a
To determine
Introduction:
Internal
:
The principle of internal control followed.
b
To determine
Introduction:
Internal control system helps in reviewing the system in place for the purpose of safeguarding the assets of the business, for the purpose of placing the reliability on the financial statement and to adhere to the laws in force.
:
The principle of internal control followed.
c
To determine
Introduction:
Internal control system helps in reviewing the system in place for the purpose of safeguarding the assets of the business, for the purpose of placing the reliability on the financial statement and to adhere to the laws in force.
:
The principle of internal control followed.
d
To determine
Introduction:
Internal control system helps in reviewing the system in place for the purpose of safeguarding the assets of the business, for the purpose of placing the reliability on the financial statement and to adhere to the laws in force.
:
The principle of internal control followed.
e
To determine
Introduction:
Internal control system helps in reviewing the system in place for the purpose of safeguarding the assets of the business, for the purpose of placing the reliability on the financial statement and to adhere to the laws in force.
:
The principle of internal control followed.
f
To determine
Introduction:
Internal control system helps in reviewing the system in place for the purpose of safeguarding the assets of the business, for the purpose of placing the reliability on the financial statement and to adhere to the laws in force.
:
The principle of internal control followed.
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Students have asked these similar questions
Internal Control Principles
Pampillonia Fruits Market took the following actions to improve internal
controls. For each of the following actions, identify the internal control principle
the company followed.
a. The recordkeeper is prohibited from having control over cash.
b. An insurance (bonding) policy is purchased against losses from theft by a
cashier.
c. Each cashier is designated a specific cash drawer and is solely responsible
for cash in that drawer.
d. Detailed records of inventory are kept to ensure items lost or stolen do not
go unnoticed.
e. Digital time clocks are used to register which employees are at work at what
times.
f. External auditors are regularly hired to evaluated internal controls.
1
Whole Fruits Market took the following actions to improve internal controls. For each of the following actions, identify the internal control principle the company followed. a. Prohibit the recordkeeper from having control over cash. b. Purchased an insurance (bonding) policy against losses from theft by a cashier. c. Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer. d. Detailed records of inventory are kept to ensure items lost or stolen do not go unnoticed. e. Digital time clocks are used to register which employees are at work at what times. f. External auditors are regularly hired to evaluate internal controls.
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Chapter 6 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQ
Ch. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Cash Over and Short P1 Record the journal entry...Ch. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QSCh. 6 - Prob. 11QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 1PSACh. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 4PSACh. 6 - Prob. 5PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 4PSBCh. 6 - Prob. 5PSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1GLPCh. 6 - Prob. 1AACh. 6 - Prob. 2AACh. 6 - Prob. 3AACh. 6 - Prob. 1BTNCh. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 5BTNCh. 6 - Prob. 6BTN
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Similar questions
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- Accounting Some strategies in management can use to implement controls to ensure the integrity and existence of the client's cash balances. Reconciling cash can be a great control in most cases since receipts tie to deposits so it's accurate and cash exists since it hits the bank account. Now reconciling on a daily basis is important as well but would you be able to negotiate the cash box if the employee was using a lapping fraud to steal money? If they took $100 of cash and issued a manual receipt to the customer then used the next $100 to come in to clear the AR from the first customer on the cash receipt system, wouldn't I still reconcile? What could I do as a manager to prevent this type of fraud from occurring?arrow_forwardDetermine whether each cash receipts procedure is an internal control strength or weakness. Cash receipts 1. If a sales clerk makes an error in recording a cash sale, they can access the register's electronic record to correct the transaction. 2. One of the two employees tasked with opening mail is also the recordkeeper for the business. 3. The supervisor has access to both cash and the accounting records. 4. Receipts are given to customers for only sales that are above $20. 5. Sales clerks are not required to enter the sale in the register after each transaction. Instead, the company gives employees flexibility to enter sales at the end of the day or week. 6. The recordkeeper of cash transactions is also in charge of depositing cash receipts in the bank. Strength or Weaknessarrow_forwardWhat controls can be used: a) to make sure cash accounts are accurate b) to make sure cash receipts are appropriately recorded c) to limit access for individuals who can initiate electronic transfers of cash Please use the illustration below to help you answer this question. Hint: Look at 'Examples of Controls' column for the answersarrow_forward
- Which of the following internal controls is the most effective in preventing employees from using company funds to purchase personal items? A. Adequate separation of duties between the cash receipts and the recording of cash receipts. B. Cash reconciliations are performed daily. C. The purchase requisition forms are required for all purchases and the warehouse staff check the deliveries against the approved purchase requisition forms to make sure the delivered items match the pre-approved orders. D. Cash payments need to be approved based on supporting documents, such as purchase orders and receiving reports. E. purchase requisition forms are pre-numbered, and their sequence is accounted for.arrow_forward5 Identify which control activity is violated in each of the following situations, and explain how the situation creates an opportunity for fraud or inappropriate accounting practices. Once a month, the sales department sends sales invoices to the accounting department to be recorded. Several clerks at Harper's Groceries use the same cash register drawer. Steve orders merchandise for Baker Company; he also receives merchandise and authorizes payment for merchandise.arrow_forwardWhole Fruits Market took the following actions to improve internal controls. For each of the following actions, select the internal control principle the company followed. a. Personal ID cards are used to limit access to only authorized employees. b. The company divides responsibility for a transaction between multiple departments. c. Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer. d. Purchased an insurance (bonding) policy against losses from theft by a cashier. e. To ensure equipment theft does not go undetected, detailed accounting records are kept. f. The company's internal auditors frequently assess the performance of internal controls.arrow_forward
- Match each of the following cash receipt activities to the internal control principle to which it bestrelates. Enter the appropriate letter in the space provided.1. A list of checks received in the mail is prepared.2. Total cash receipts are compared to the amounton the bank deposit slip.3. A password is required to open the cash register.4. Price changes at the checkout require a manager’sapproval.5. Cashiers are required to count the cash in theirregister at the beginning and end of each shift.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verifyarrow_forwardBelow are descriptions of internal control problems. In the space to the left of each item, enter the code letter of th best internal control principle that is related to the problem described. Internal Control Principles A. Establishment of responsibility B. Segregation of duties C. Physical control devices D. Documentation procedures E. Independent internal verification F. Human resource controls 1.The same person opens incoming mail and records the cash receipts. 2. Three people handle cash sales from the same cash register drawer. 3. A clothing store is experiencing a high level of inventory shortages because people try on clothing and walk out o the store without paying for the merchandise. 4. The person who is authorized to sign checks approves purchase orders for payment 5. Some cash payments are not recorded because checks are not pre-numbered. 6. Cash shortages are not discovered because there are no daily cash counts by supervisors. 7. The treasurer of the company has not…arrow_forwardInternal Control of Cash Receipts The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. An employee from the cashier's office counts the cash, compares the total with the memo, and takes the cash to the cashier's office. a. Identify the weak link in internal control. An employee from the cashier's office counts the cash and compares the total with the memorandum. An employee from the cashier's office takes the cash to the cashier's office. An employee from the treasurer's office takes the cash to the cashier's office. The sales clerks should have access to the cash register tapes. The sales clerks should not have access to the cash register tapes. b. Who should remove the cash register tapes from the register? A teller from the bank An…arrow_forward
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