1 | ||
Internal control principle | ||
a | Establish Responsibility | |
b | Document Procedures | |
c | Document Procedures | |
d | Restrict Access | |
e | Segregate Duties | |
f | Document Procedures | |
g | Independently Verify | |
2 | ||
The internal control weakness that allowed this theft to occur is: | ||
The supervisor was responsible for handling the cash, preparing the cash count sheet, and depositing cash in the bank. | ||
Locker Rentals Corp. (LRC) operates locker rental services at several locations throughout the city including the...
locker rentals corp. operates locker rental services Question of 071 points Locker Rentals Corp (LRC operates locker rent services at several locations throughout the city including the airport bus depot shopping malls, and the s ite Unlike some of the old mechanic lockers that change a fred amount per use LRC s lockers operate electronically and are able to change based on hours of use. The locker systemami a daily message to LRC s e indicating the number of hours...
The following is the description of sales and cash receipts for the Lady’s Fashion Fair, a retail store dealing in expensive women’s clothing. Sales are for cash or credit, using the store’s own billing rather than credit cards.Each salesclerk has her own sales book with prenumbered, three-copy, multicolored sales slips attached, but perforated. Only a central cash register is used. It is operated by the store supervisor, who has been employed for 10 years by Alice Olson, the store owner....
Part 1: The following procedures were recently installed by Raspberry Creek Company: After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer's office for...
11-32(Objective 11-3) The following is the description of sales and cash receipts for the Lady’s Fashion Fair, a retail store dealing in expensive women’s clothing. Sales are mainly on account using the store’s own billing rather than credit cards; however, some customers prefer to pay cash. Salesclerks assist customers and then direct them to the central desk for payment. The computer used to enter sales is operated by the store supervisor, who has been employed for 10 years by Alice...
11-32 (Objective 11-3) The following is the description of sales and cash receipts for the Lady’s Fashion Fair, a retail store dealing in expensive women’s clothing. Sales are mainly on account using the store’s own billing rather than credit cards; however, some customers prefer to pay cash. Salesclerks assist customers and then direct them to the central desk for payment. The computer used to enter sales is operated by the store supervisor, who has been employed for 10 years by...
Background Spyglass is the 10th largest company in the security services industry. Spyglass is a publicly traded company. The company's current annual revenues are $150 million. Elvis McGraw became the company's Chief Executive Officer (CEO) eight years ago. Mr. McGraw is a "hands-on" executive who was eventually given the additional title of Chairman of the Board. Branch operations are conducted in all states east of the Mississippi. The company’s philosophy is primarily one of decentralization. However, corporate accounting, accounts payable and payroll systems represent...
LO 10-6, 10 10-36 Based on an assessment of audit risk, the auditors are concerned with the following two risks: 1. The risk that that the client might be making duplicate payments to vendors. 2. The risk that the client's accounting clerk might be making unauthorized payments to himself. a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client...