Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 8, Problem 4BTN
To determine
List of 10 internal controls a consumer can observe in a typical retail department store.
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Identify which department has stewardship (having the job of supervising or taking care of) over the following journals, ledgers, and files. (Please be reminded of the Honor Pledge written in your answer sheet.) 1. Customer open order file
2. Sales journal 3. Journal voucher file
4. Cash receipts journal 5. Inventory subsidiary ledger 6. Accounts receivable subsidiary ledger 7. Sales history file 8. Shipping report file 9. Credit memo file10. Sales order file11. Closed sales order file
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Which of the following is an example of an input control?
a.making sure report that are distributed to the proper people
b.monitoring the work of data entry clerks.
c. Collecting accurate statistics of historical transactions while gathering data.
d. Performing a check-digit test on a customer acount number
e.Having anothr person review the design of a business form
.Internal Controls and RiskReview the following description of the purchasing and AP procedures for a company and answer the questions at the end.The purchasing agent receives an inventory status report on his computer terminal from the inventory control application, which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier.When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal.A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP…
Chapter 8 Solutions
Principles of Financial Accounting.
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQ
Ch. 8 - Which of the following assetsinventory, building,...Ch. 8 - What is a petty cash receipt? Who should sign it?Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1QSCh. 8 - COSO internal control components C1 COSO lists...Ch. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 1APCh. 8 - Prob. 2APCh. 8 - Prob. 3APCh. 8 - Prob. 4APCh. 8 - Prob. 5APCh. 8 - Prob. 1BPCh. 8 - Prob. 2BPCh. 8 - Prob. 3BPCh. 8 - Prob. 4BPCh. 8 - Prob. 8SPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Review the opening feature of this chapter that...Ch. 8 - Prob. 6BTN
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- XYZ Company hired you as an internal control officer to help the company in developing the internal control system which is consists of policies and procedures to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies. As well as the system will prevent avoidable losses and help managers both plan operations and monitor company and human performance. list any five good principles of internal control that you need to consider when developing the system. Essay Toolbar navigation BIUS A !!! 四arrow_forwardTo carry out their analysis, planning, implementation, and control responsibilities, marketing managers need a marketing information system (MIS) to assess information needs, develop the needed information, and distribute it in a timely manner. Assume that you are a Marketing Manager of Diners and your company wants you to deploy an efficient Marketing information system. Explain how marketing intelligence will help Diners in collecting information?arrow_forwardMatch each of the following control activities with its definition. Control Activities Definitions 1. Separation of duties 2. Physical controls 3. Proper authorization 4. Employee management 5. Reconciliations 6. Performance reviews a. The company should maintain security over assets and accounting records.b. Management should periodically determine whether the amounts of physical assets of the company match the accounting records.c. The company should provide employees with appropriate guidance to ensure they have the knowledge necessary to carry out their job duties.d. The actual performance of individuals or processes should be checked against their expected performance.e. Authorizing transactions, recording transactions, and maintaining control of the related assets should be separated among employees.f. To prevent improper use of the company’s resources, only certain employees are allowed to carry out certain business activities.arrow_forward
- Performance Task #2. Case Study Instructions: Analyze the given situations and prepare what is asked for you to compute. Answers must be in a paragraph form. Place your output in your notebook. God bless! You are auditing the financial statements of Sakura Store, a retailer of sporting goods, appliances, and electronics. During the prior years' audits of Sakura Store, you noticed that management was less concerned about the timely recording of liabilities and expenses than assets and revenues. As a result, very little of Sakura Store's internal control resources were expended in assuring an accurate and timely recording of accounts payable. You also believed that Sakura Store's management may be motivated to delay recording its liabilities at year end, so you are currently approaching the search for unrecorded liabilities with caution. Questions: a. Wha are the substantive auditing procedures would you perform in searching for Sakura's unrecorded liabilities? 109 6. How would the…arrow_forwardWhich preventive, detective, and/or corrective controls would best mitigate the following threat, and why? (d) An employee received an email purporting to be from her boss informing her of an important new attendance policy. When she clicked on a link embedded in the email to view the new policy, she infected her laptop.arrow_forwardAnswer the following questions. a. Which department is responsible for initiating the purchase of materials? b. What is the name of the document generated by the department identified in (a) above? c. Typically, multiple copies of a purchase order are prepared. One copy should go to the vendor, and one is retained in the purchasing department. To achieve proper control, which other departments should receive copies of the purchase order? d. What documents does the accounts payable clerk review before setting up a liability? e. Which document transfers responsibility for goods sold to a common carrier?arrow_forward
- Give an example of managerial accounting information that could help a manager make the following decision. The manager of a Target store is deciding how many security personnel to employ for the purpose of reducing shoplifting.arrow_forwardDescribe ways that system theory can help you implement an OD intervention. Assume an organization wants to give more power or decision-making authority to lower level employees. Describe one intervention that might be useful for achieving the objective. Assume an organization conducted a workshop on customer service. The goal was to improve the customers experience. Describe one way you might be able to evaluate the interventionarrow_forwardInternal control in a small business requires an outside CPA to audit the company books. True False "Train your customers", as discussed in the Budgeting module, refers to training customers on how to properly use products that the company sells. True Falsearrow_forward
- Explain how internal control can be enhanced through the proper installation of Information Technology Identify the risks for accounting systems that rely heavily on IT functions. Distinguish between general controls and application controls and give examples at least five Which duties should be segregated in a computer department? Describe the typical duties of computer personnel. What aspects of documentation, file security and retention control procedures are unique to computer systems? What are the responsibilities of the database administrator (DBA) function? Compare the risks associated with network environment to those associated with centralized IT functions.arrow_forwardYou are the CEO of a large organization that implemented a data warehouse for internal analysis of corporate data. The operations manager has written you a memo advocating opening the data warehouse to your suppliers and customers. Explain any merit to this proposal. What are the control issues, if any?arrow_forwardWhich of the following is an example of an input control?a. making sure that output is distributed to the proper peopleb. monitoring the work of programmersc. collecting accurate statistics of historical transactions while gathering datad. recalculating an amount to ensure its accuracye. having another person review the design of a business formarrow_forward
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