REQUIRED: IDENTFY ONE ACCOUNT AND ONE ASSERTION FOR EACH CONDITION (IDENTIFY EITHER THE DEBIT OR CREDIT SIDE) CONDITION AFFECTED ACCOUNT OR TRANSACTION CLASS AFFECTED ASSERTION EXAMPLE The accounting department's chief bookkeeper handles and processes cashreceipts. By deferring the recording of cash received from customers, the bookkeeper can conceal a cash shortage. This is done by applying cash received from one customer to the account of another customer who has already made a payment. As long as there is a steady payment stream by customers, cash can be "pulled out" of the stream and covered by subsequent payments. CASH CASH -COMPLETENESS OR OR A/R - EXISTENCE ACCOUNTS RECEIVABLE Evader, an online retailer, fails to pay states for sales taxes it has collected from customers Inventory is materially misstated due to pricing errors
REQUIRED: IDENTFY ONE ACCOUNT AND ONE ASSERTION FOR EACH CONDITION (IDENTIFY EITHER THE DEBIT OR CREDIT SIDE) CONDITION AFFECTED ACCOUNT OR TRANSACTION CLASS AFFECTED ASSERTION EXAMPLE The accounting department's chief bookkeeper handles and processes cashreceipts. By deferring the recording of cash received from customers, the bookkeeper can conceal a cash shortage. This is done by applying cash received from one customer to the account of another customer who has already made a payment. As long as there is a steady payment stream by customers, cash can be "pulled out" of the stream and covered by subsequent payments. CASH CASH -COMPLETENESS OR OR A/R - EXISTENCE ACCOUNTS RECEIVABLE Evader, an online retailer, fails to pay states for sales taxes it has collected from customers Inventory is materially misstated due to pricing errors
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5MC: There are several elements to internal controls. Which of the following would not address the issue...
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Transcribed Image Text:A
В
C
D
REQUIRED: IDENTIFY ONE ACCOUNT AND ONE ASSERTION FOR EACH CONDITION
(IDENTIFY EITHER THE DEBIT OR CREDIT SIDE)
CONDITION
AFFECTED ACCOUNT OR TRANSACTION CLASS
AFFECTED ASSERTION
EXAMPLE The accounting department's chief bookkeeper handles and processes
cashreceipts. By deferring the recording of cash received from customers, the
bookkeeper can conceal a cash shortage. This is done by applying cash received
from one customer to the account of another customer who has already made a
payment. As long as there is a steady payment stream by customers, cash can be
"pulled out" of the stream and covered by subsequent payments.
CASH
CASH -COMPLETENESS
OR
OR
A/R - EXISTENCE
ACCOUNTS RECEIVABLE
A
Evader, an online retailer, fails to pay states for sales taxes it has collected from customers
B
Inventory is materially misstated due
pricing errors
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