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a. | Separation of duties | Preventive. | |
b. | Camera system place behind cash register | Detective | |
c. | Background check on all new employee hires. | Preventive, Detective. | |
d. | Locking doors and windows at night | Preventive. | |
e. | Purchasing a dire insurance policy. | Preventive. | |
f. | Preparing reconciliation for the cash account. | Preventive, Corrective. |
Journal Entry | ||||
Serial No. | Account | Debit $ | Credit $ | |
a. | Petty Cash | 250.00 | ||
Cash | 250.00 | |||
b. | Delivery Expense | 20.00 | ||
Supplies Expense | 15.00 | |||
Travel Expense | 50.00 | |||
Petty Cash | 85.00 | |||
b. | Petty Cash | 250.00 | ||
Less: Expense | 85.00 | |||
Balance | 165.00 | |||
Actual Balance | 155.00 | |||
Miscellaneous Expense | 10.00 | |||
Journal Entry | ||||
Miscellaneous Expense | 10.00 | |||
Petty Cash | 10.00 | |||
c. | Petty Cash | 145.00 | ||
Cash | 145.00 | |||
Company raised petty cash amount from $ 250 to $ 300 | ||||
Balance already in Petty cash account | 155.00 | |||
Balance should be in Petty cash account | 300.00 | |||
Balance to be added to Petty cash account | 145.00 | |||
1. Identify each of the following controls as preventive, detective or corrective (NOTE, SOME MAY FALL INTO MORE T...
Chec Required: Identify each of the following internal controls as primarily a preventive, detective, or corrective control. Type of Control Internal Controls a. Limit access to petty cash funds. Reconcile the petty cash fund before replenishing it Require two signatures on checks above a specified limit, Enable hidden flags or audit trails on accounting software. Examine credit card statements and corresponding receipts each month, independently, to determine whether charges are appropriate. Keep checks in a locked box or drawer and...