REVIEW QUESTIONS1 Companies with good governance are less risky to audit.'Expand this statement to justify the relevance of good governance to audit.2 All companies have accounting systems to ensure all valid transactions are properlyrecorded within a timely period. In order to accomplish company's objectives, describethe common control activities that the company may implement in their accountingsystems.3 Rafi works at TBG Cinema. Sells the tickets and also ushers customers into thecinema halls. The standard procedure requires Rafi to tear the tickets, give one-half tothe customer, and keep the other half for record. In order to control cash receipts, themanager will compare each night's cash receipts with the number of ticket stubs onhand.Identify the internal control weakness in this situation. How can this situation beimproved?

Answered: "Companies with good governance are…

"Companies with good governance are less risky to audit.' Expand this statement to justify the relevance of good governance to audit,

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.7DC

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