Question

In: Accounting

Evaluate Larson Cement 's internal controls processes as they applies to the case.

Evaluate Larson Cement 's internal controls processes as they applies to the case.

Solutions

Expert Solution

The initial engagement phase of the case has not been completed properly. There has been no explicit consideration of preparing an incident report, of who to notify, or of possible legal issues (including the issue of secretly recording a video of the suspect), or the issue of loss mitigation and recovery. There has also been no thorough analysis of theaccounting records, or the handwriting on the checks.

Regarding internal controls, the signing of checks and the management of bank accounts should not be performed within the accounting function. Betty Ladrone works as a staff accountant andhandles these functions. But at least she doesn’t also reconcile the bank statements.

Joe is obviously slow in reconciling bank statements. Reconciliations need to be done promptly. Further, using an online banking service, check payments can be reviewed on adaily or weekly basis, something that Joe does not do.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Using the ABC Retailers - Internal Controls Case, provide a summary of the case and the...
Using the ABC Retailers - Internal Controls Case, provide a summary of the case and the main points of the case(5 sentences)
Q1)Case 4-78 Internal Controls Relating to Inventory Recall our discussion relating to internal controls and the...
Q1)Case 4-78 Internal Controls Relating to Inventory Recall our discussion relating to internal controls and the safeguarding of assets of the organization. Inventory is normally one of the largest balances on the statement of financial position. Required: Identify and discuss internal controls relating to inventory. The input in the box below will not be automatically graded, but may be reviewed and considered by your instructor. Q2)Exercise 4-52 Operating Cycle Business activity is often described as being cyclical in nature. Required:...
As an internal auditor, you have been assigned to evaluate the controls and operation of a...
As an internal auditor, you have been assigned to evaluate the controls and operation of a computer payroll system. To test the computer systems and programs, you submit independently created test transactions with regular data in a normal production run. What would be transactions in a payroll system? What is this audit technique called?
As an internal auditor, you have been assigned to evaluate the controls and operation of a...
As an internal auditor, you have been assigned to evaluate the controls and operation of a computer payroll system. To test the computer systems and programs, you submit independently created test transactions with regular data in a normal production run. What would be transactions in a payroll system? What is this audit technique called? List advantages and disadvantages of this technique. Give at least one other concurrent audit technique and how it could be applied specifically to the cycle your...
Petty Cash is easily misappropriated if business processes and internal controls are not established and enforced....
Petty Cash is easily misappropriated if business processes and internal controls are not established and enforced. Provide and explain a minimum of four controls and/or concepts that will help a company ensure that its petty cash accounts are appropriately used and safeguarded.
P4-51B. (Learning Objectives 2, 4: Explain the objectives and components of internal control; evaluate internal controls)...
P4-51B. (Learning Objectives 2, 4: Explain the objectives and components of internal control; evaluate internal controls) Each of the following situations reveals an internal control weakness: Situation a. In evaluating the internal control over cash payments of Arlington Manufacturing, an auditor learns that the purchasing agent is responsible for purchasing diamonds for use in the company’s manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent’s work. Situation b. Kelly Hixson owns an...
Briefly describe the purpose of internal controls in a company and the importance of internal controls...
Briefly describe the purpose of internal controls in a company and the importance of internal controls as related to cash.
Defining internal control Internal controls
Question Defining internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records.Requirements1. Which objective do you think is most important?2. Which objective do you think the internal controls must accomplish for the business to survive? Give your reason.
internal control Read the IMA Case, Lack of Internal Controls: Beaumont Independent School District, and choose one of the...
internal control Read the IMA Case, Lack of Internal Controls: Beaumont Independent School District, and choose one of the following schemes: Lack-of-Internal-Controls-Beaumont-Independent-School-District Case.pdf Booster Club Fund Medical Magnet Program tuition funds and student transcript fees, Cash funds and scholarship donations, Catering ad food service, and Printing services provided by Brian Collins, BISD employee Patricia Adams Lambert’s son.  Answer the following questions for the scheme selected: Use specific examples to identify weaknesses that existed in the internal control environment at BISD. Based on the...
Why are internal controls important in an organization? Describe some internal controls that relate to cash...
Why are internal controls important in an organization? Describe some internal controls that relate to cash receipts and cash disbursements. Please answer in your own words. Do not use outside resources.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT