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"Companies with good governance are less risky to audit.' Expand this statement to justify the relevance of good governance to audit,

"Companies with good governance are less risky to audit.' Expand this statement to justify the relevance of good governance to audit,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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REVIEW QUESTIONS 1 Companies with good governance are less risky to audit.' Expand this statement to justify the relevance of good governance to audit. 2 All companies have accounting systems to ensure all valid transactions are properly recorded within a timely period. In order to accomplish company's objectives, describe the common control activities that the company may implement in their accounting systems. 3 Rafi works at TBG Cinema. Sells the tickets and also ushers customers into the cinema halls. The standard procedure requires Rafi to tear the tickets, give one-half to the customer, and keep the other half for record. In order to control cash receipts, the manager will compare each night's cash receipts with the number of ticket stubs on hand. Identify the internal control weakness in this situation. How can this situation be improved?
Transcribed Image Text:REVIEW QUESTIONS 1 Companies with good governance are less risky to audit.' Expand this statement to justify the relevance of good governance to audit. 2 All companies have accounting systems to ensure all valid transactions are properly recorded within a timely period. In order to accomplish company's objectives, describe the common control activities that the company may implement in their accounting systems. 3 Rafi works at TBG Cinema. Sells the tickets and also ushers customers into the cinema halls. The standard procedure requires Rafi to tear the tickets, give one-half to the customer, and keep the other half for record. In order to control cash receipts, the manager will compare each night's cash receipts with the number of ticket stubs on hand. Identify the internal control weakness in this situation. How can this situation be improved?
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