Which of the following would represent proper segregation of duties? Explain your answer. The employee who...
Which of the following would represent proper segregation of duties? Explain your answer.
- The employee who has custody of cash also does accounts receivable record keeping.
- The employee who has custody of cash completes the bank reconciliation.
- The employee who opens mail containing checks prepares a list of checks received.
- The employee who opens mail containing checks records transactions in the general ledger.
Homework Answers
| Option C is the answer | ||
| Segregation of duties is a internal control technique which involves more than one individual in performing a task to prevent the fraud/error |
Add Answer to:
Which of the following would represent proper segregation of
duties? Explain your answer.
The employee who...
The proper segregation of duties is an important control activity in all businesses. Analyze the following...
The proper segregation of duties is an important control activity in all businesses. Analyze the following scenario to properly apply the concepts of segregation of duties. The cashier of Blanchard Industries opens the mail containing customer payments. He then performs the following procedures Makes a list of all payments received Prepares a deposit slip and takes the deposit to the bank Records the cash received in the customer account records Makes any necessary adjustments to customer account records to correct...
This a is a separation of duties exercise. Your small business client, Phillip's computer Repair Shop...
This a is a separation of duties exercise. Your small business client, Phillip's computer Repair Shop , is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees -Abigail, Bryan, and Chris- to maintain the best separation of duties. Required: Assign the following 10 duties to each of the ten employees. a) Reconcile bank statement, b) Open...
Which of the following is an internal control for checks received through the mail? Multiple Choice...
Which of the following is an internal control for checks received through the mail? Multiple Choice ) The accounting department counts the cash, prepares the deposit slip and deposits the cash in the bank. O The mai es gives che The mail clerk gives checks to the person who makes the bank deposit. The accounting department register with the cash count sheet. The Cashier prepares a journal quantity sold, and cash received. Comparing the cash in the register with the...
One of your smaller clients has had to lay off one if its four employees in...
One of your smaller clients has had to lay off one if its four employees in the accounting department. The owner of the business has asked for you help in re-assigning the remaining three employees' (Yasmine, Xavier, and Zoe) duties so that there is the least amount of fraud risk remaining as possible. Assign the following ten duties to each of the three employees. NOTE: The best way to approach this type of problem is to think about separation of...
Saved LeBaron Corporation receives most payments by mail. When the payments are received in the mail,...
Saved LeBaron Corporation receives most payments by mail. When the payments are received in the mail, they are opened by two employees who stamp the checks “For Deposit Only” and make a list of the checks received. The list and the checks are then forwarded to the treasurer who has the responsibility to deposit the checks at First National Bank. These procedures are an example of which preventive control? Question 1 options: Proper authorization. Physical controls. Separation of duties. E-commerce...
Match each of the following principles of internal control with the appropriate description below. A. Establishment...
Match each of the following principles of internal control with the appropriate description below. A. Establishment of responsibility B. Segregation of duties C. Documentation procedures D. Physical controls E. Independent internal verification F. Human resource controls _____ 1. Involves the review, comparison, and reconciliation of data prepared by other employees. _____ 2. Provide evidence that transactions and events have occurred. _____ 3. Includes the authorization and approval of transactions. _____ 4. Rotating employees' duties and requiring employees to take vacations....
3. The four events-processing functions that constitute the segregation of duties control plan are A. Authorizing...
3. The four events-processing functions that constitute the segregation of duties control plan are A. Authorizing events B. Executing events C. Recording events D. Safeguarding resources Required Below is a list of ten events-processing activities, five relating to the cycle of activities involved in processing a sales event and seven relating to the cycle for a purchase event. Classify each of the twelve activities into one of the four functional categories listed above by placing the letter A, B, C,...
A small air conditioning repair and parts supply company employs 25 workmen who perform services tasks...
A small air conditioning repair and parts supply company employs 25 workmen who perform services tasks and 3 office staff: One of the office staff, Harold Jones, has been with the company since it opened its doors. During that time, he has earned the trust of the owner and has proven to be a diligent employee who often works late, occasionally comes in on weekend for no additional pay, and hasn’t taken a substantial vacation in over 10 years. Instead,...
Current Attempt in Progress The following control procedures are used in Bunny's Boutique Shoppe for cash...
Current Attempt in Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. The store manager personally approves all payments before she signs and issues checks. Use of cash instead of checks; no...
TRUE OF FALSE A signature card shows the signature of only the person who authorizes others...
TRUE OF FALSE A signature card shows the signature of only the person who authorizes others in the company to sign checks. The payor is the party to whom payment is made. Bank customers are considered creditors of the bank so the bank can shows their accounts with credit balances on the bank’s records. Depositing all cash, checks, etc. in a bank and paying with checks is an internal control procedure over checks. In preparing bank reconciliation, the amount of...
The proper segregation of duties is an important control activity in all businesses. Analyze the following scenario to properly apply the concepts of segregation of duties. The cashier of Blanchard Industries opens the mail containing customer payments. He then performs the following procedures Makes a list of all payments received Prepares a deposit slip and takes the deposit to the bank Records the cash received in the customer account records Makes any necessary adjustments to customer account records to correct...
Which of the following is an internal control for checks received through the mail? Multiple Choice ) The accounting department counts the cash, prepares the deposit slip and deposits the cash in the bank. O The mai es gives che The mail clerk gives checks to the person who makes the bank deposit. The accounting department register with the cash count sheet. The Cashier prepares a journal quantity sold, and cash received. Comparing the cash in the register with the...
3. The four events-processing functions that constitute the segregation of duties control plan are A. Authorizing events B. Executing events C. Recording events D. Safeguarding resources Required Below is a list of ten events-processing activities, five relating to the cycle of activities involved in processing a sales event and seven relating to the cycle for a purchase event. Classify each of the twelve activities into one of the four functional categories listed above by placing the letter A, B, C,...
Current Attempt in Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. The store manager personally approves all payments before she signs and issues checks. Use of cash instead of checks; no...
Most questions answered within 3 hours.
-
Compile a list (7 or more) of other commands useful for
navigating or manipulating the UNIX/Linux...
asked 4 minutes ago -
How many grams of PbBr2 will precipitate when excess CrBr3
solution is added to 61.0 mL...
asked 6 minutes ago -
If I was given the address of 134.15.0.0/16 from my ISP and I
wanted to use...
asked 11 minutes ago -
What is the pH of the solution that results of dissolving 1.74g
of sodium hydroxide in...
asked 15 minutes ago -
Given a standardized normal distribution (with μ = 0 and a σ =
1), what is...
asked 52 minutes ago -
Given the following information:
acetic acid
CH3COOH
Ka = 1.8×10-5
triethylamine
(C2H5)3N
Kb = 5.2×10-4
(1)...
asked 38 minutes ago -
Potassium permanganate(KMNO4)is has a solubility of 6.4 g/ 100 g
of water at 20ºC, and 250...
asked 35 minutes ago -
51.
As the marginal propensity to expend rises, the multiplier:
decreases.
is impossible to determine.
increases....
asked 42 minutes ago -
The Baldwin Company currently has the following balances on their
balance sheet:
Total
Liabilities
$69,309
Common...
asked 45 minutes ago -
A quiet town in Kansas has 10 people, all of whom have the same
preferences. There...
asked 50 minutes ago -
Summarize what an organization needs from a leader.
a. Analyze what might happen to an organization...
asked 53 minutes ago -
How would one critically evaluate an organizations marketing
strategies from the viewpoint of its consumers, as...
asked 52 minutes ago