Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 9RQ
To determine
Describe the three other procedures conducive to strong internal control.
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Which of the following is NOT an issue with the Bradmark internal controls as it
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James Walker authorizes and executes transactions.
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Explain why each of the following combinations of tasks should or should not beseparated to achieve adequate internal control.a. Approval of bad debt write-offs and the reconciliation of the accounts receivablesubsidiary ledger and the general ledger control account.b. Distribution of payroll checks to employees and approval of employee time cards.c. Posting of amounts from both the cash receipts and the cash disbursements journalsto the general ledger.d. Writing checks to vendors and posting to the cash account.e. Recording cash receipts in the journal and preparing the bank reconciliation.
Explain why each of the following combinations of tasks should or should no be separated to achieve adequate internal control.
a. Approval of bad debt write-offs and the reconciliation of the AR subsidiary ledger and the GL Control Account.
b. Distribution of payroll checks to employees and approval of employee time cards.
c. Posting of amounts from both the cash receipts and the cash disbursement journals to the general ledger.
d. Writing checks to vendors and posting to the cash account.
e. Recording cash receipts in the journal and preparing the bank reconciliation.
Please provide a clear explanation.
*No plagiarism please*
Chapter 11 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 11 - Explain the difference between a customers order...Ch. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - State briefly the objective of the billing...Ch. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQ
Ch. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - Prob. 17RQCh. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - Prob. 20RQCh. 11 - Prob. 21RQCh. 11 - Prob. 22RQCh. 11 - Give an example of a type of receivable...Ch. 11 - Prob. 24RQCh. 11 - Prob. 25QRACh. 11 - Prob. 26QRACh. 11 - Prob. 27QRACh. 11 - Prob. 28QRACh. 11 - Prob. 29QRACh. 11 - Prob. 30QRACh. 11 - Prob. 31QRACh. 11 - Prob. 32QRACh. 11 - Prob. 33QRACh. 11 - Prob. 34QRACh. 11 - Prob. 35QRACh. 11 - Prob. 36AOQCh. 11 - Which of the following would provide the most...Ch. 11 - Prob. 36COQCh. 11 - Prob. 36DOQCh. 11 - Prob. 36EOQCh. 11 - Under SEC rules, which of the following is not...Ch. 11 - Prob. 36GOQCh. 11 - Prob. 36HOQCh. 11 - Prob. 36IOQCh. 11 - Prob. 36JOQCh. 11 - Prob. 36KOQCh. 11 - Prob. 36LOQCh. 11 - Prob. 37OQCh. 11 - Prob. 38OQCh. 11 - An auditors working papers include the following...Ch. 11 - Prob. 40OQCh. 11 - Prob. 41OQCh. 11 - Prob. 42OQCh. 11 - Prob. 43OQCh. 11 - Prob. 44PCh. 11 - Prob. 45PCh. 11 - Prob. 46PCh. 11 - Prob. 47PCh. 11 - The July 31, 20X0, general ledger trial balance of...Ch. 11 - Prob. 49ITCCh. 11 - Prob. 50ECCh. 11 - Prob. 51EC
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Similar questions
- There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.arrow_forward1. Segregation of Duties. Explain why each of the following combinations of tasks should, or should not, be separated to achieve adequate internal control. a. Approval of bad debt write-offs and the reconciliation of the accounts receivable subsidiary ledger and the general ledger control account. b. Distribution of payroll checks to employees and approval of employee time cards. c. Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger. d. Writing checks to vendors and posting to the cash account. e. Recording cash receipts in the journal and preparing the bank reconciliation.arrow_forwardExplain why each of the following combinations of task should or should not be separated to achieve adequate internal control. Approval of bad debts write-offs and the reconciliation of the AR subsidiary ledger and the GL control account. Distribution of payroll checks to employees and approval of employee time cards. Posting of amounts from both the cash receipts and the cash disbursement journal to general ledger. Writing checks to vendors and posting to the cash account. Recording cash receipts in the journal and preparing the bank reconciliation.arrow_forward
- Which of the following does not demonstrate internal control practices? a. Allowing access of accounting computers to everyone b. Development of written policies and procedures c. Performing regular reconciliations of accounts d. Ensuring that cashier and bookkeeping duties are segregatedarrow_forwardWhich of the following is not a generally recognized internal control activity? Oa. limiting access to computerized accounting records Ob. reducing the cost of hiring seasonal employees Oc. preparation of bank reconciliations on a monthly basis Od. establishment of clear lines of authority to carry out specific tasksarrow_forward1. An effective system of internal control requires segregation of basic functions. Which three of the following functions should ideally be segregated? Explain details A. Authorisation of orders B. Recording cash receipts on receivables ledger C. Invoicing D. Credit control E. Reconciliation of receivables ledger with receivables ledger control accountarrow_forward
- 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 Falsearrow_forwardQuestion 5 Explain why each of the following combinations of tasks should or should not be separated to achieve adequate internal control. Approval of bad debt write-offs and the reconciliation of the accounts receivablesubsidiary ledger and the general ledger control account. Distribution of payroll checks to employees and approval of employee time cards. c. Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger. Writing checks to vendors and posting to the cash account. Recording cash receipts in the journal and preparing the bank reconciliationarrow_forwardAn internal control system where obligations by the company should be liquidated only by checks. A. Voucher system B. Current account c. Check system d. Outstanding checkarrow_forward
- Internal controls are crucial to ensuring that financial transactions are authorized and company records are maintained properly. Please explain some of the internal control procedures that accounting departments utilize to achieve the aforementioned goals. How do these internal controls help accounting departments achieve their objectives?arrow_forwardWhich of the following is an internal control activity that could prevent a paid disbursement voucher from being presented for payment a second time?a. Vouchers should be prepared by individuals who are responsible for signing disbursement checks.b. Disbursement vouchers should be approved by at least two responsible management officials.c. The date on a disbursement voucher should be within a few days of the date the voucher is presented for payment.d. The official who signs the check should compare the check with the voucher and should stamp “PAID” on the voucher documents.arrow_forwardA company employs three accounts payable clerks and one treasurer. Their responsibilities are as follows: Employee Responsibility Clerk 1 Reviews vendor invoices for proper signature approval Clerk 2 Enters vendor invoices into the accounting system and verifies payment terms Clerk 3 Posts entered vendor invoices to the accounts payable ledger for payment and mails checks. Treasurer Reviews the vendor invoices and signs each check. Which of the following would indicate a weakness in the company’s internal control?a. Clerk 1 opens all of the incoming mail.b. Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.c. Clerk 3 mails the checks and remittances after they have been signed.d. The treasurer uses a stamp for signing checks.arrow_forward
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