Identify the principle of internal control that is violated in the following situation: Alexis Company is...
Identify the principle of internal control that is violated in
the following situation:
Alexis Company is a very small business. Alexis Bailey, one of the two office clerks, opens the mail each day and removes the cash receipts that come in the mail. Alexis then records the receipts in the cash records and the customer's account and deposits the cash in the bank.
Select one:
A. Maintain adequate records
B. Divide responsibility for related transactions
C. Perform regular and independent reviews
D. Insure assets and bond key employee
Homework Answers
Correct option is: B. Divide responsibility for related transactions
Separation of duties is an essential part of Internal controls. Here all the entries related to receiving ,collecting , depositing and recording of payment due is done by same person even when 2 office clerks are available, It increases the incident of fraud
Add Answer to:
Identify the principle of internal control that is violated in
the following situation:
Alexis Company is...
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Che Identify the internal control principle that was violated in each of the following separate situations...
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For each of these five separate cases, identify the principle(s) of internal control that is violated....
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Match each of the options in the boxes to the items in the second
picture.
Match each of the following business practices with the best internal control principle it is an example of. The employee responsible for ordering Inventory is a different employee than the one who makes the payment A company uses time clocks versus hand written time records. Cashier has access to cash in drawer, but does not have access to the cash register tape (accounting record). A...
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Choices are
Establish responsibilities
Insure assets and bond key employees
Separate record keeping from custody of assets
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Apply technological controls
Establish responsibilities
Insure assets and bond key employees
Maintain adequate records
Perform regular and independent reviews
Separate record keeping from custody of asset
Identify the internal control principle that was violated in each of the following separate situations. Situations Principle Violated The recordkeeper left town after the owner discovered a large sum of money had disappeared. An audit found...
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Current Attempt in Progress The following control procedures are used in Keaton Company for over-the-counter cash receipts (a) For each procedure, explain the weakness in internal control and identify the control principle that is violated. Weakness Procedure Principle Violated 1. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. Cashiers are not bonded and background checks are not conducted Cash is not adequately protected from theft Inability to establish...
Match each of the options in the boxes to the items in the second
picture.
Match each of the following business practices with the best internal control principle it is an example of. The employee responsible for ordering Inventory is a different employee than the one who makes the payment A company uses time clocks versus hand written time records. Cashier has access to cash in drawer, but does not have access to the cash register tape (accounting record). A...
Choices are
Establish responsibilities
Insure assets and bond key employees
Separate record keeping from custody of assets
Choices
Apply technological controls
Establish responsibilities
Insure assets and bond key employees
Maintain adequate records
Perform regular and independent reviews
Separate record keeping from custody of asset
Identify the internal control principle that was violated in each of the following separate situations. Situations Principle Violated The recordkeeper left town after the owner discovered a large sum of money had disappeared. An audit found...
E7.2 (LO 1, 2) C The following control procedures are used in Sheridan Company for cash receipts. Identify weaknesses in internal control over cash receipts and suggest improvements. 1. To minimize the risk of robbery, cash in excess of $200 is stored in a locked metal box in the office manager's office until it is deposited in the bank. All employees know where the office manager keeps the key to the box. 2. The company has one cash register with...
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