EBK PRINCIPLES OF AUDITING & OTHER ASSU
21st Edition
ISBN: 9781260299434
Author: WHITTINGTON
Publisher: YUZU
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Textbook Question
Chapter 7, Problem 37OQ
Listed below are controls that have been developed by the management of Cirus Manufacturing Co.
- 1. Management surveys customers about their satisfaction with the company’s service.
- 2. The human resources department investigates the educational background of prospective employees.
- 3. Invoices are reviewed for accuracy before they are mailed to customers.
- 4. Management periodically evaluates the threats to preparing reliable financial statements.
- 5. The internal auditors periodically evaluate the controls in the various departments of the company.
- 6. Management has developed and distributed a code of conduct.
- 7. Management compares actual performance with budgets and
forecasts. - 8. The accounting department uses a manual of accounting policies and procedures.
- 9. Entry into the warehouse is strictly controlled by security personnel.
- 10. Management has prepared and distributed an organizational chart.
Required:
For each of the controls, identify the internal control component and, if applicable, the subcomponent or principle to which it relates.
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Students have asked these similar questions
Select the appropriate control activities for each of the following definitions.
Definitions
Control Activities
a. The company should maintain security over assets and accounting records.
Management should periodically determine whether the amounts of physical
b.
assets of the company match the accounting records.
The company should provide employees with appropriate guidance to ensure
C.
they have the knowledge necessary to carry out their job duties.
The actual performance of individuals or processes should be checked against
d.
their expected performance.
Authorizing transactions, recording transactions, and maintaining control of the
е.
related assets should be separated among employees.
To prevent improper use of the company's resources, only certain employees
are allowed to carry out certain business activities.
1) Why is Responsibility Accounting necessary and how is it implemented?
2) Determination of control risk in the HR cycle (personnel) include an example of the explanation you gave?
3) To design an audit program for testing controls, what stages must the auditor go through when auditing a banking service company?
Segregation of Duties (SOD) is a basic building block of sustainable risk management and internal controls for a business. Which of the following statements is not a segregation of duties violation?A. The duties of Internal IT Developer of company is to write application programs and then perform required program maintenance when a problem occurs.B. The payroll administrator is distributing payroll checks to employees and recording cash receipts in the journal under supervision.C. The accounting clerk who recording cash receipts in the journal in the general ledger performs bank reconciliation to compare if there are any differences between cash transactions.D. The inventory warehouse clerk task is to maintain the inventory records with custody of physical assets inventory to manage asset identification, location and condition
Explain why you choose your answer, and not the other (in max 200 words)
Chapter 7 Solutions
EBK PRINCIPLES OF AUDITING & OTHER ASSU
Ch. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Identify the four types of control activities and...Ch. 7 - One basic concept of internal control is that no...Ch. 7 - Prob. 10RQ
Ch. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Prob. 13RQCh. 7 - Prob. 14RQCh. 7 - Prob. 15RQCh. 7 - Prob. 16RQCh. 7 - Prob. 17RQCh. 7 - Prob. 18RQCh. 7 - Prob. 19RQCh. 7 - Prob. 20RQCh. 7 - Prob. 21RQCh. 7 - Prob. 22RQCh. 7 - Prob. 23RQCh. 7 - Management is responsible for designing and...Ch. 7 - Prob. 25QRACh. 7 - Prob. 26QRACh. 7 - Prob. 27QRACh. 7 - Prob. 28QRACh. 7 - Prob. 29QRACh. 7 - Prob. 30QRACh. 7 - Prob. 31QRACh. 7 - During your first audit of a medium-size...Ch. 7 - Prob. 33QRACh. 7 - Prob. 34QRACh. 7 - Which of the following would be least likely to be...Ch. 7 - Prob. 35BOQCh. 7 - Prob. 35COQCh. 7 - Prob. 35DOQCh. 7 - Prob. 35EOQCh. 7 - Prob. 35FOQCh. 7 - Prob. 35GOQCh. 7 - Prob. 35HOQCh. 7 - Which of the following is not an advantage of...Ch. 7 - Prob. 35JOQCh. 7 - Prob. 35KOQCh. 7 - Prob. 35LOQCh. 7 - Prob. 36OQCh. 7 - Listed below are controls that have been developed...Ch. 7 - Prob. 38OQCh. 7 - For each term in the first column, find the...Ch. 7 - Prob. 40AOQCh. 7 - Prob. 40BOQCh. 7 - Prob. 40COQCh. 7 - Prob. 40DOQCh. 7 - Prob. 40EOQCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45ITC
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