Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 7, Problem 37OQ
Listed below are controls that have been developed by the management of Cirus Manufacturing Co.
- 1. Management surveys customers about their satisfaction with the company’s service.
- 2. The human resources department investigates the educational background of prospective employees.
- 3. Invoices are reviewed for accuracy before they are mailed to customers.
- 4. Management periodically evaluates the threats to preparing reliable financial statements.
- 5. The internal auditors periodically evaluate the controls in the various departments of the company.
- 6. Management has developed and distributed a code of conduct.
- 7. Management compares actual performance with budgets and
forecasts. - 8. The accounting department uses a manual of accounting policies and procedures.
- 9. Entry into the warehouse is strictly controlled by security personnel.
- 10. Management has prepared and distributed an organizational chart.
Required:
For each of the controls, identify the internal control component and, if applicable, the subcomponent or principle to which it relates.
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The internal control procedures in Dayton Company result in the following provisions.Identify the principles of internal control that are being followed in each case.
(a)
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Select the principle of internal control Human resource controlsSegregation of dutiesEstablishment of responsibilityPhysical controlsIndependent internal verificationDocumentation procedures
(b)
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(c)
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Select the principle of…
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.
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Authorizing transactions, recording transactions, and maintaining control of the
е.
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To prevent improper use of the company's resources, only certain employees
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1) Why is Responsibility Accounting necessary and how is it implemented?
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3) To design an audit program for testing controls, what stages must the auditor go through when auditing a banking service company?
Chapter 7 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Identify the four types of control activities and...Ch. 7 - One basic concept of internal control is that no...Ch. 7 - Prob. 10RQ
Ch. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Prob. 13RQCh. 7 - Prob. 14RQCh. 7 - Prob. 15RQCh. 7 - Prob. 16RQCh. 7 - Prob. 17RQCh. 7 - Prob. 18RQCh. 7 - Prob. 19RQCh. 7 - Prob. 20RQCh. 7 - Prob. 21RQCh. 7 - Prob. 22RQCh. 7 - Prob. 23RQCh. 7 - Management is responsible for designing and...Ch. 7 - Prob. 25QRACh. 7 - Prob. 26QRACh. 7 - Prob. 27QRACh. 7 - Prob. 28QRACh. 7 - Prob. 29QRACh. 7 - Prob. 30QRACh. 7 - Prob. 31QRACh. 7 - During your first audit of a medium-size...Ch. 7 - Prob. 33QRACh. 7 - Prob. 34QRACh. 7 - Which of the following would be least likely to be...Ch. 7 - Prob. 35BOQCh. 7 - Prob. 35COQCh. 7 - Prob. 35DOQCh. 7 - Prob. 35EOQCh. 7 - Prob. 35FOQCh. 7 - Prob. 35GOQCh. 7 - Prob. 35HOQCh. 7 - Which of the following is not an advantage of...Ch. 7 - Prob. 35JOQCh. 7 - Prob. 35KOQCh. 7 - Prob. 35LOQCh. 7 - Prob. 36OQCh. 7 - Listed below are controls that have been developed...Ch. 7 - Prob. 38OQCh. 7 - For each term in the first column, find the...Ch. 7 - Prob. 40AOQCh. 7 - Prob. 40BOQCh. 7 - Prob. 40COQCh. 7 - Prob. 40DOQCh. 7 - Prob. 40EOQCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45ITC
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