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Identify and evaluate any threats in relation to auditor independence.
Identify the main audit planning issues that need to be addressed in the planning documents.
An employee from the cashier's office counts the cash, compares the total with the memo, and takes the cash to the cashier's office.
Identify the internal control weaknesses that exist at Big Bad Burgers, and discuss what can be done to prevent this theft.
Indicate the weak link in internal control in the handling of cash receipts.
Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank.
Suggest appropriate control procedures that would have prevented or detected the theft of cash.
Suggest ways that La Food Grocery Stores could prevent or detect the theft of merchandise as described.
Javier Meza and Sue Quan are both cash register clerks for Healthy Markets. Ingrid Perez is the store manager for Healthy Markets.
Identify and discuss the similarities and differences in each business's cash internal controls.
You have been asked to evaluate the company's safety management system (SMS) to determine if there were any deficiencies in the system.
Is any one element of internal control more important than another?
Why should the responsibility for a sequence of related operations be divided among different persons? Explain.
Why should the employee who handles cash receipts not have the responsibility for maintaining the accounts receivable records? Explain.
Why should the responsibility for maintaining the accounting records be separated from the responsibility for operations? Explain.
The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?
Oscar Fye has recently been hired as the manager of Janie's Canyon Coffee, a national chain of franchised coffee shops.
What internal control weaknesses do you see in the return policy that make cash thefts easier?
As an internal auditor of Republic City Bank, how would you respond to this change in policy?
What general weaknesses in Societe Generale's internal controls contributed to the occurrence and size of the losses?
An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000.
The fraud was discovered when employees noticed an increase in delivery frequency from vendors and the use of unusual vendors.
Describe the purposes of audit documentation and explain why each purpose is important.
Briefly list and explain the primary audit risks in the production and inventory area of the K&K audit.
Identify factors that encourage objective auditor judgments despite the presence of friendly client-auditor relationships.