Wong has the following internal controls over cash receipts and cash payments. Identify the control activity...
Wong has the following internal controls over cash receipts and cash payments.
Identify the control activity that is applicable to each item in the table shown below:
|
All cash is deposited intact, in the bank account, daily. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
Blank cheques are stored in a safe in the controller’s office. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
All cashiers are bonded. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
All over-the-counter receipts are recorded on cash registers. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
All payments, except for petty cash transactions, are made by cheque. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
Cheque signers are not allowed to record cash payment transactions. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
Company cheques are pre-numbered. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
Daily cash counts are made by cashier department supervisors. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
Only cashiers may operate cash registers. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
Only the controller or assistant controller may sign cheques. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
The bank statement is reconciled monthly by an internal auditor. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
|
The duties of receiving cash, recording cash, and maintaining custody of cash are assigned to different individuals. |
Segregation of Duties/Independent checks of performance/Documentation procedures/Physical and it control/ Establishment of responsibility/Human Resource Controls |
Indicate if the control activity is for cash receipts or for cash payments including petty cash.
|
All cash is deposited intact, in the bank account, daily. |
Cash Receipits/Both/Cash Payments |
||
|
Blank cheques are stored in a safe in the controller’s office. |
Cash Receipits/Both/Cash Payments |
||
|
All cashiers are bonded. |
Cash Receipits/Both/Cash Payments |
||
|
All over-the-counter receipts are recorded on cash registers. |
Cash Receipits/Both/Cash Payments |
||
|
All payments, except for petty cash transactions, are made by cheque. |
Cash Receipits/Both/Cash Payments |
||
|
Cheque signers are not allowed to record cash payment transactions. |
Cash Receipits/Both/Cash Payments |
||
|
Company cheques are pre-numbered. |
Cash Receipits/Both/Cash Payments |
||
|
Daily cash counts are made by cashier department supervisors. |
Cash Receipits/Both/Cash Payments |
||
|
Only cashiers may operate cash registers. |
Cash Receipits/Both/Cash Payments |
||
|
Only the controller or assistant controller may sign cheques. |
Cash Receipits/Both/Cash Payments |
||
|
The bank statement is reconciled monthly by an internal auditor. |
Cash Receipits/Both/Cash Payments |
||
|
Cash Receipits/Both/Cash Payments |
Homework Answers
Que: Identify the control activity that is applicable to each item in the table shown below:
ANS:
|
All cash is deposited intact, in the bank account, daily. |
Segregation of Duties |
|
Blank cheques are stored in a safe in the controller’s office. |
Establishment of responsibility |
|
All cashiers are bonded. |
Establishment of responsibility |
|
All over-the-counter receipts are recorded on cash registers. |
Documentation procedures |
|
All payments, except for petty cash transactions, are made by cheque. |
Documentation procedures |
|
Cheque signers are not allowed to record cash payment transactions. |
Documentation procedures |
|
Company cheques are pre-numbered. |
Documentation procedures |
|
Daily cash counts are made by cashier department supervisors. |
Physical and it control |
|
Only cashiers may operate cash registers. |
Segregation of Duties |
|
Only the controller or assistant controller may sign cheques. |
Segregation of Duties |
|
The bank statement is reconciled monthly by an internal auditor. |
Physical and it control |
|
The duties of receiving cash, recording cash, and maintaining custody of cash are assigned to different individuals. |
Human Resource Controls |
Que:Indicate if the control activity is for cash receipts or for cash payments including petty cash:
Ans:
|
All cash is deposited intact, in the bank account, daily. |
Cash Receipts |
||
|
Blank cheques are stored in a safe in the controller’s office. |
Cash Payments |
||
|
All cashiers are bonded. |
Both |
||
|
All over-the-counter receipts are recorded on cash registers. |
Both |
||
|
All payments, except for petty cash transactions, are made by cheque. |
Both |
||
|
Cheque signers are not allowed to record cash payment transactions. |
Both |
||
|
Company cheques are pre-numbered. |
Cash Payments |
||
|
Daily cash counts are made by cashier department supervisors. |
Both |
||
|
Only cashiers may operate cash registers. |
Both |
||
|
Only the controller or assistant controller may sign cheques. |
Cash Payments |
||
|
The bank statement is reconciled monthly by an internal auditor. |
Both |
||
|
Both |
Add Answer to:
Wong has the following internal controls over cash receipts and
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Please help me answer
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Please help me answer
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