The objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT A. employees and managers comply with laws and regulations. B. profits are maximized while minimizing spending. C. business information is accurate. D. assets are safeguarded and used for business purposes. A deposit received by the bank will include: A. a credit to the company's bank account. B. no increase or decrease is made to the company's bank account. C. a credit to the cash account on the company's books. D. a debit to the company's bank account. When a bank debits your account, it is decreasing the balance. True False

The objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT A. employees and managers comply with laws and regulations. B. profits are maximized while minimizing spending. C. business information is accurate. D. assets are safeguarded and used for business purposes. A deposit received by the bank will include: A. a credit to the company's bank account. B. no increase or decrease is made to the company's bank account. C. a credit to the cash account on the company's books. D. a debit to the company's bank account. When a bank debits your account, it is decreasing the balance. True False

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 12CYBK

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A bank reconciliation takes time and must balance. An employee was struggling in balancing the bank reconciliation. Her supervisor told her to plug (make an unsupported entry for) the difference, record to Miscellaneous Expense, and simply move on. Discuss the internal controls problem with this directive.
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