EXERCISE 74Subdivision ofCertain subdivisions ef duties are highly desirable for the purpose of achieving areasonable degree of internal control. For each of the following six responsibilities,explain whether or not assignming the duty to an employee who also handles cashreceipts would represent a significant weakness in internal control. Briefly explainyour reasuning.Duties2 Besponsibility for executing both cash and credit sales transactions.b Responsibility for maintaining the general ledger.e Responsibillity for maintaining the accounts receivable subsidiary ledger.d Besponsibility for issuing credit memoranda for sales returns.e Pesponsibility for preparing a control listing of all cash collections.1 Besponsibility for preparing monthly bank reconciliations.

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Certain subdivisions e duties are highly desirable for the purpose of achieving a reasonable degree of internal rntrol. For each of the following six responsibilities, explain whether or not assigning the duty to an employee who also handles cash receipts would represent a significant weakness in internal control. Briefly explain your reasornang. a Besponsibility for executing both cash and credit sales transactions. b Responsibility for maintaining the general ledger. : Responsibility for maintaining the accounts receivable subsidiary ledger.

Certain subdivisions e duties are highly desirable for the purpose of achieving a reasonable degree of internal rntrol. For each of the following six responsibilities, explain whether or not assigning the duty to an employee who also handles cash receipts would represent a significant weakness in internal control. Briefly explain your reasornang. a Besponsibility for executing both cash and credit sales transactions. b Responsibility for maintaining the general ledger. : Responsibility for maintaining the accounts receivable subsidiary ledger.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 11RQSC

See similar textbooks

Similar questions

What are the fundamental responsibilities of the accounts payable department and the cashier?
Exercise 6-3 (Algo) Internal control strengths and weaknesses LO C1 Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure. An employee cannot approve their own request for purchases of inventory. Several salesclerks share the same cash drawer. Employees that handle easily transferable assets such as cash are bonded. The company devotes resources towards keeping accurate accounting records for machinery. The company saves money by having employees involved in operations perform the only review of internal controls.
PART II — INTERNAL CONTROL OVER CASH RECEIPTS AND DISBURSEMENTS Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are: CodeInternal Control Principle AEstablishment of responsibility BSegregation of duties CDocumentation procedures DPhysical controls EIndependent internal verification FHuman resource controls Instructions: Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be used once, more than once, or not at all. ____ 1.The duties of receiving and recording cash should be assigned to different individuals. ____ 2.Daily cash counts should be made by cashier department supervisors. ____ 3.Employees should be required to take vacations. ____ 4.Cash register tapes should be used for over-the-counter receipts. ____…
39 Internal control goes beyond accounting function and incorporates both accounting and administrative control. From the following alternatives, identify which one is not a part of accounting control? a. Performance appraisal b. Internal check c. Standard Costing d. Bank Reconciliation
Question 5 What role does each of the following departments play: cash receipts, accounts receivable, personnel department and asset acquisition? Be complete.
ACC 622 Chapter 3 Problem 12 a. Using the COSO internal control model for control activities (e.g, transaction authorization, segregation of duties) identify anypotential internal control weakness in the NSC system. b. For each weakness discuss potentila for fraud in the system. c. Make recommendations for correcting each identified control weakness.
What is the billing/accounts receivable/cash receipts (B/AR/CR) process?