Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 6, Problem 1SE
To determine
Find the types of fraud committed.
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Answer the following questions about the controls in bank accounts:
Understanding bank account controls
ver the following questions about the controls in bank
Learning Objective 6
accounts:
Requirements
1. Which bank control protects against forgery?
Vlhich bank control reports the activity in the customer's account each period?
Which bank control confirms the amount of money put into the bank account?
XYZ LLC dealing all its transactions through its bank to avoid employee fraud and theft. For offering daily services,the bank debited OMR 20 to the bank account and the company unaware it.How will you adjust the above reconciliation item in bank reconciliation statement?
a. Add OMR 20 to the company's bank statement balance
b. Add OMR 20 to the company's cash book balance
c. Deduct OMR 20 from company's cash book balance
d. Deduct OMR 20 from the company's cash book balance
Instructions
(a) For each procedure, explain the weakness in anternal control and iden ify the control
principle that is violated
(b) For each weakness, suggesta charze in the procedure that will resuit in good interua.
control.
E7-4 The following control procedures are used in Eunny's Boutique Shoppe for cash
disbursements.
res
1. Each week, 100 company checks are left in an unmarked envelove on a shelf behind
the cash register.
2. The store manager personally approves all payments before she signs and issues checks.
3. The store purchases used goods for resale from people that bring items to the store.
Since that can occur anytime that the store is open, all employees are authorized to
purchase goods for resale by disbursing cash from the register. The purchase is docu-
mented by having the store employee write on a piece of paper a description of the
item that was purchased and the amount that was paid. The employee then signs the
paper and puts it in the register.
4. After payment,…
Chapter 6 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Prob. 1SCCh. 6 - Prob. 2SCCh. 6 - Prob. 3SCCh. 6 - Prob. 4SCCh. 6 - Separation of duties refers to separating all of...Ch. 6 - Which of the following is not a control activity?...Ch. 6 - Prob. 7SCCh. 6 - Prob. 8SCCh. 6 - Internal auditors focus on _________ ; external...Ch. 6 - Prob. 10SCCh. 6 - Prob. 11SCCh. 6 - Prob. 12SCCh. 6 - Prob. 1SECh. 6 - Fraud triangle (Learning Objective 3) 5-10 min....Ch. 6 - Prob. 3SECh. 6 - Internal controls (Learning Objective 2) 5-10 min....Ch. 6 - Prob. 5SECh. 6 - Prob. 6SECh. 6 - Prob. 7SECh. 6 - Prob. 8SECh. 6 - Prob. 9SECh. 6 - Prob. 10SECh. 6 - Prob. 11SECh. 6 - Accounting terminology (Learning Objectives 1 4)...Ch. 6 - Prob. 13SECh. 6 - Prob. 14SECh. 6 - Prob. 1CFSAPCh. 6 - Prob. 1EIACh. 6 - Prob. 2EIACh. 6 - Prob. 3EIACh. 6 - Prob. 4EIACh. 6 - Prob. 5EIACh. 6 - Prob. 6EIACh. 6 - Case 7. Kelly Straton, a trusted employee of...Ch. 6 - Prob. 8EIACh. 6 - Prob. 1FACh. 6 - Industry Analysis Purpose: To help you understand...Ch. 6 - Prob. 1SBACh. 6 - Prob. 1WC
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