Chapter 5 Homework

With different industry definitions and viewpoints, fraud can be a tough issue for audit committee members to grasp for oversight purposes. The legal obligations of audit committee members have intensified because their standard duty of care and loyalty to the entity has increased in light of management fraud activities.

All goods purchased pass through a receiving department under the direction of the chief purchasing agent. The duties of the receiving department are to unpack, count, and inspect the goods. The quantity received is compared with the quantity shown on the receiving department’s copy of the purchase order. If there is no discrepancy, the purchase order is stamped “OK—Receiving Dept.” and forwarded to the accounts payable section of the accounting

a. Familiarize yourself with the internal control system for acquisitions and cash disbursements by studying the information in Figure 10-12 and Figure 10-13.

 2. For your second relationship, identify the independent and dependent variables and describe the attributes of each.

(After noting that electricity passing through a conductor produces a glowing red or white heat, Edison imagined using this light for pratical uses. )

Trace items returned to the receiving report, taking note of quantity and date received (S‑4).

"When a person 's diet lacks the chemical, his or her body experiences abnormal functioning."

Fraud will always be an issue but it has been more prevalence in the past before there were any specific guidelines for business entities and accountants to adhere and conform to.

Phar-Mor was a large grocery story and had thousands of inventory items on hand at each store which processed significant amounts of cash each day. The organizational structure of Phar-Mor allowed for inadequate and fraudulent recording keeping of assets as well as authorization and approval of purchasing transactions. Phar-Mor’s IT system of event logs was not robust enough to see which transactions had been modified, deleted or created, which allowed Phar-Mor to overstate the value of inventory.

In response to management’s request, a thorough evaluation of internal control over disbursements for manufacturing plant purchases of parts and supplies is being planned. As a preliminary step in planning the engagement, each plant manger has been requested to provide a written description of his or her plant’s procedures for processing disbursement vouchers for parts and supplies. Presented below are some excerpts from one of the written descriptions.

_______ is an understanding of how cultural differences across and within nations can affect the way in

1.An extensive network of specialized cells that carry information to and from all parts of the body is called the nervous system.

In this chapter, as in many other chapters, he intersperses short sentences into his narrative. In fact, some of his paragraphs in this chapter are only 1 sentence long. What kind of information is conveyed in these short paragraphs?

1. Why does the Indian classical tradition dominate the musical image of South Asia in the west?

b) What is the firm’s forecasted average daily sales for the first three months of operations? For the entire half-year?