Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4ATC
To determine
Prepare a memo to the bank president, outlining the procedure that should be followed to prevent this type of problem in the future.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Week 7Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase orders, sales invoices and suppliers’ invoices to prepare journal vouchers for general ledger entries. Each day he posts the journal vouchers to the general ledger and the related subsidiary ledgers. At the end of each month, he reconciles the subsidiary accounts to their control accounts in the general ledger to ensure they balance.Discuss the internal control weaknesses and risks associated with the above process.
Exercise 7-03
Listed below are five procedures followed by Eikenberry Company.Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.
Procedure
IC Good or Weak?
Related Internal Control Principle
1.
Several individuals operate the cash register using the same register drawer.
Select a weakness in internal control
WeakGood
Select a control principle that is violated
Documentation ProceduresHuman Resource ControlsEstablishment of ResponsibilityIndependent Internal VerificationPhysical ControlsSegregation of Duties
2.
A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
Select a weakness in internal control
GoodWeak
Select a control…
Question 9
To what does the following relate: As the business has grown and the number of transactions per day has multiplied, the financial accountant is very busy and constantly making errors
1.
Control activities – Independent checks and reconciliations
2.
Inherent limitations – cost vs benefit
3.
Inherent limitations – human error, time constraints
4.
Monitoring of controls
Question 10
To what does the following relate: Entry to and exit from the warehouse are monitored 24 hours a day by surveillance cameras
1.
Control environment
2.
Monitoring of controls
3.
Validity of transactions
4.
Control activities – Access controls
Question 11
To what does the following relate: Regular stock counts are performed, and the actual count compared to the inventory on the system
1.
Control activities – documentation and records
2.
Validity of transactions
3.
Control activities – independent…
Chapter 4 Solutions
Survey Of Accounting
Ch. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - What is meant by separation of duties? Give an...Ch. 4 - 9. What are the attributes of a high-quality...Ch. 4 - 10. What is a fidelity bond? Explain its purpose.Ch. 4 - Prob. 10Q
Ch. 4 - Prob. 11QCh. 4 - Prob. 12QCh. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - Prob. 17QCh. 4 - Prob. 18QCh. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 21QCh. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - Prob. 24QCh. 4 - Prob. 25QCh. 4 - Prob. 26QCh. 4 - Prob. 27QCh. 4 - Prob. 28QCh. 4 - Prob. 29QCh. 4 - Prob. 30QCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Fraud triangle Sam Sharp is an accountant with a...Ch. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 1ATCCh. 4 - Prob. 3ATCCh. 4 - Prob. 4ATCCh. 4 - ATC 6-7 Ethical Dilemma I need just a little extra...
Knowledge Booster
Similar questions
- 7 The following control procedures are used in Parker Company for over-the-counter cash receipts. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. The company accountant makes the bank deposit and then records the day's receipts. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank.arrow_forwardCHAPTER 7 Internal Control and Cash hris Component: One of your responsibilities as an employee with Halifax Fitness is to handle the petty ni You are concerned about the auto expense claims made regularly by Kim Marin, the manager who d u Kim tells you how much the expenditures are and you give her the cash out of petty cash. Kìm has aET VOu receipts to substantiate her claims. The owner of the business is visiting and asks you how ins are going. What should you do, if anything?? Explain. Problem 7-3A Petty cash fund reimbursement and analysis of errors LO4 Canital Irrigation has only a general journal in its accounting system and uses it to record all transactions. Houever, the company recently set up a petty cash fund to facilitate payments of small items. The following pemy cash transactions were noted by the petty cashier as occurring during April 2020: Received a company cheque for $300 to establish the petty cash fund. Received a company cheque to replenish the fund for the…arrow_forwardEXERCISE 7-3 Some of the following practices are suggestive of strerngth in internal controls others are suggestive of weakness. Identify cach of the eight practices with the term Strength or Weakness. Give reasons for your answers. Internal Con- trol: Identifying , Strength and Weakness a Vouchers and all supporting documents are stamped “PAID" before being sent to the finance department for review and signing of checks. b Personnel in the accounting department are not authorized to handle cash re- ceipts, Therefore, accounts receivable records are maintained by the credit. manager, who handles all collections from customers. c Accounting department personnel are not authorized to prepare bank reconcili- ations. This procedure is performed in the finance department and the account ing department is notified of any required adjustments to the accounts. d Checks received through the mail are recorded daily by the person maintaining accounts reccivable records. e All cash receipts are…arrow_forward
Recommended textbooks for you
- Accounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
- Corporate Financial AccountingAccountingISBN:9781337398169Author:Carl Warren, Jeff JonesPublisher:Cengage Learning
Accounting Information Systems
Finance
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Cengage Learning