Question

In: Accounting

Select one internal control from the list provided that would prevent or detect the error or...

Select one internal control from the list provided that would prevent or detect the error or fraud described. Controls may be used twice in this exercise or not at all.

1. ___ Invoices for goods sold are posted to the wrong account.

2. ___ Goods ordered by customers are shipped, but are not billed to anyone.

3. ___ Goods are removed from inventory for unauthorized orders.

4. ___ Invoices are sent to allies in a fraudulent scheme and sales are recorded for fictitious transactions.

5. ___ Customers’ checks are received for less than the full account balance, but the customers’ full account balances are credited.

6. ___ Customer checks are stolen before being forwarded to the cashier for deposit.

7. ___ Customer checks are stolen after being forwarded to the cashier for deposit.

8. ___ False transactions granting credit for sales returns are recorded.

Answer Bank

A. Shipping clerks compare goods received from the warehouse with the details on the shipping documents.

B. Approved sales invoices are required for goods to be released from the warehouse.

C. Monthly statements are mailed to all customers.

D. Shipping clerks compare goods received from the warehouse with approved sales invoices.

E. Daily Sales Journal totals are compared to a control total of invoices.

F. Shipping documents are compared with sales invoices when goods are shipped.

G. Sales invoices are compared with the master price file.

H. Control amounts posted to the amounts receivable ledger are compared with control totals for invoices.

I. Sales invoices are compared with shipping documents and approved customer orders before invoices are mailed.

J. Goods returned for credit are approved by the supervisor of the sales department.

K. Total amounts posted to the accounts receivable ledger from remittance advices are compared with the validated bank deposit slip.

L. Pre-numbered credit memos are used for granting credit for goods returned.

Expert Solution

ekkarill92 answered 2 years ago

Internal control consists of the policies and procedures established to prevent or detect errors or fraud....

Internal control consists of the policies and procedures established to prevent or detect errors or fraud. The internal control structure is the cornerstone to good financial practices. Review the Management Antifraud Programs and Controls (14-step program) and select one of the steps to discuss. Be sure to share your thoughts on how this step helps to enhance the reliability of financial reporting. Please provide a reference

Identify the internal control procedures classified per (SAS78/COSO) that could prevent or detect this fraud.

Select one of the five COSO internal control components, Develop one control process that could be...

Select one of the five COSO internal control components, Develop one control process that could be associated with the COSO control component you selected., Write 2 control activities related to the control process you developed., Describe how each of these two control activities could be tested.

Which of these is not a good internal control practice? Select one: a. The use of...

Which of these is not a good internal control practice? Select one: a. The use of the periodic inventory system for stock control b. Taking out a trial balance c. The use of passwords for computer access d. The pre-numbering of documents

select one that would BEST prevent the system failure from occurring: A hacker accessed the Website...

select one that would BEST prevent the system failure from occurring: A hacker accessed the Website at Valhalla, Inc. and changed some of the graphics. Confused by these changes, some customers took their business elsewhere. A. Access control software B. Firewall C. Personnel termination control plans D. Personnel selection and hiring control plans E. Continuous data protection F. Rotation of duties and forced vacations Bob Johnson, the company cashier, was known throughout the company as a workaholic. After three years...

Identify the principles of internal control. Explain the use of cash and internal controls to prevent...

Identify the principles of internal control. Explain the use of cash and internal controls to prevent fraud. Explain why corporations invest in stocks and debt securities. Describe how debt and stock investments are reported in financial statements. Evaluate the effects of unusual or irregular items on financial statements.

List the principles of internal control.

List at least 3 technologies that are provided by Web2 and select one of them to...

List at least 3 technologies that are provided by Web2 and select one of them to explain in detail.?

For each of the procedures described in the table below, select from the list provided the...

For each of the procedures described in the table below, select from the list provided the audit procedure that the auditor performed. Then, indicate if the procedure was a substantive procedure or a test of controls. Possible Audit Procedure: 1. Analytical Procedures 2. Confirmation 3. Inquiry 4. Inspection 5. Observation 6. Recalculation 7. Reperformance Description of Procedure Audit Procedure Performed (1-7 from list above) Classification of Audit Procedure (Substantive or Test of Controls) 1) Requested the bank to respond to...

Which of the following would least likely prevent a computer hacking? Select one: a. Encryptions are...

Which of the following would least likely prevent a computer hacking? Select one: a. Encryptions are used for sensitive data files, password files, and sensitive computer programs. b. Passwords of transferred or terminated employees are changed immediately. c. Security policies that include training for all employees, customers, and others who do not need to access the network. d. Hacker publications and communications are reviewed to learn the current hacking methods. Question 3 Not yet answered Points out of 2.00 Flag...