Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 10RQ
To determine
Explain the most effective means of assuring consistent performance of the defined duties.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Select the appropriate control activities for each of the following definitions.
Definitions
Control Activities
a. The company should maintain security over assets and accounting records.
Management should periodically determine whether the amounts of physical
b.
assets of the company match the accounting records.
The company should provide employees with appropriate guidance to ensure
C.
they have the knowledge necessary to carry out their job duties.
The actual performance of individuals or processes should be checked against
d.
their expected performance.
Authorizing transactions, recording transactions, and maintaining control of the
е.
related assets should be separated among employees.
To prevent improper use of the company's resources, only certain employees
are allowed to carry out certain business activities.
Which control activity is the entity implementing when credit and debt memorandums are prenumbered and accounted for on a daily basis. Select one
a. Independent checks on performance
b. Physical control over assets and records
c. Adequate documents and records
d. Proper authorization of transactions and activities
Which of the following is an attribute of the internal control
procedure—assignment
of responsibilities?
A.
The external auditors will monitor internal controls.
B.
The company should separate the custody of assets from accounting.
C.
Each position has clearly assigned responsibilities.
D.
To validate their accounting records, a company should have an audit by an external accountant.
Chapter 14 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 14 - If a corporation overstates its earnings, are its...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - List the major responsibilities of an accounts...Ch. 14 - Prob. 10RQ
Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - Prob. 17RQCh. 14 - Whitehall Company records its liabilities in an...Ch. 14 - Prob. 19RQCh. 14 - Prob. 20RQCh. 14 - Prob. 21RQCh. 14 - Prob. 22RQCh. 14 - What is the purpose of the auditors review of cash...Ch. 14 - Prob. 24RQCh. 14 - Prob. 25RQCh. 14 - Prob. 26RQCh. 14 - Prob. 27QRACh. 14 - Prob. 28QRACh. 14 - Prob. 29QRACh. 14 - Prob. 30QRACh. 14 - Prob. 31QRACh. 14 - Prob. 32QRACh. 14 - Which of the following procedures is least likely...Ch. 14 - Prob. 33BOQCh. 14 - Which of the following is the best audit procedure...Ch. 14 - Prob. 33DOQCh. 14 - Prob. 33EOQCh. 14 - Prob. 33FOQCh. 14 - Prob. 33GOQCh. 14 - Prob. 33HOQCh. 14 - Ordinarily, the most significant assertion...Ch. 14 - Prob. 33JOQCh. 14 - Prob. 33KOQCh. 14 - Prob. 33LOQCh. 14 - Prob. 34OQCh. 14 - Prob. 35OQCh. 14 - Prob. 36OQCh. 14 - Prob. 37OQCh. 14 - Prob. 38PCh. 14 - Prob. 39PCh. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Prob. 43ITC
Knowledge Booster
Similar questions
- Which of the following is NOT an issue with the Bradmark internal controls as it pertains to the revenue cycle? James Walker authorizes and executes transactions. The credit manager verbally authorizes credit increases. The warehouse clerk has access to assets and record keeping. Mary receives checks and remittances from the customer.arrow_forwardWhich of the following best represents a key control for ensuring sales are properlyauthorized when assessing control risks for sales? A. The separation of duties between the billing department and the cash receipts approval department. B. The use of an approved price list to determine unit selling price. C. Copies of approved sales orders sent to shipping, billing, and accounting departments. D. Sales orders are sent to the credit department for approval.arrow_forwardThe use of a bank account addresses which objective of internal control? Group of answer choices safeguard assets ensure reliability of accounting data promote operational efficiency encourage adherence to prescribed managerial policiesarrow_forward
- which of the following account will be least likely involved in the purhasing sub-process of the purchasing and disbursement cycle? a. proper authorization of purchases b. timely recording of transactions including independent review c. proper authorization of disbursements d. segragration of duties between the credit department and custodyarrow_forwardProfessional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.arrow_forward1. The primary objective of internal controls in the expenditure cycle is to: A. Ensure the accuracy and completeness of financial transactions B. Streamline the procurement process C. Minimize the cost of purchases D. Increase the speed of payment processing 2. An example of a preventive control in the expenditure cycle is: A.Requiring management approval for large purchases B. Regular inventory counts C. Using firewalls and intrusion detection systems D. Conducting vendor audits 3. Which of the following is an example of a processing control in the expenditure cycle? A. Document sequencing B. Reconciling the bank statement C. Physical controls over inventory D. Approval of vendor invoices 4. Purchase orders are used to initiate a payment in the disbursement cycle.True False 5. An automated approval workflow for payment processing eliminates the need for managerial oversight and authorization. True or Falsearrow_forward
- What are the primary stages and controls in the accounts payable transaction cycle, from receiving vendor invoices to verifying, recording, and making payments to vendors?arrow_forwardThe following are key controls over the purchasing and disbursement cycle except: A. Proper authorization of purchases B.Timely recording of transactions including independent review C. Proper authorization of disbursement D. Segregation of duties between the credit department and custodyarrow_forwardUnder a system of good internal control, which of the following departments issues a voucher? Question 41 options: The accounts payable department The shipping department The purchasing department The billing departmentarrow_forward
- Which of the following is not considered to be part of the internal control structure of a company?A. Ensure that assets are kept secure.B. Monitor operations of the organization to ensure maximum efficiency.C. Publish accurate financial statements on a regular basis.D. Ensure assets are properly used.arrow_forwardWhich of the following are principles of internal control? (Check all that apply.) Multiple select question. Increase revenues. Establish responsibilities. Maintain adequate records. Reduce vendor payables. Perform regular and independent reviews. Divide responsibility for related transactions.arrow_forwardWhich of the following control objectives in the General Ledger activities under the Record-to-Report process is least likely to have more extensive audit procedures for a business in an industry with fewer regulations? a. To ensure that the general ledger and management accounts are accurate, reliable, and appropriately reflect the structure and operations of the organization. b. To ensure that the accounting information can be used to generate all the required statutory published accounting statements. c. To ensure that the accounting data is capable of meaningful and accurate analysis to support management decisions and actions. d. To ensure that the accounting records are maintained in accordance with the prevailing laws, regulations, and professional good practice. NEED ASAParrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage