E3B. A list of control procedures follows.e. Periodic independent verificationf. Separation of dutiesg. Sound personnel practicesa. Authorizationb. Recording transactionsc. Documents and recordsd. Physical controlsMassy Video Store maintains the following policies with regard to purchases of newDVDS at each of its branch stores:(Сontinued)Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Chapter 8: Cash and Internal Control1. Employees are required to take vacations, and the duties of employees are rotatedperiodically.2. Once each month a person from the home office visits each branch store to examinethe receiving records and to compare the inventory of DVDS with the accountingrecords.3. Purchases of new DVDS must be authorized by purchase order in the home officeand paid for by the treasurer in the home office. Receiving reports are prepared ineach branch and sent to the home office.4. All new personnel receive one hour of training in how to receive and catalogue newDVDS.5. The company maintains a perpetual inventory system that keeps track of all DVDSpurchased, sold, and on hand.Match the control procedures to each of the policies listed. (Hint: Some may have morethan one answer.)

Internal control procedures are the processes implemented so that errors and frauds are kept in…

e. Periodic independent verification f. Separation of duties g. Sound personnel practices a. Authorization b. Recording transactions c. Documents and records d. Physical controls Massy Video Store maintains the following policies with regard to purchases of new DVDS at each of its branch stores: (Continued) red. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

e. Periodic independent verification f. Separation of duties g. Sound personnel practices a. Authorization b. Recording transactions c. Documents and records d. Physical controls Massy Video Store maintains the following policies with regard to purchases of new DVDS at each of its branch stores: (Continued) red. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter13: The Accounts Payable/cash Disbursements (ap/cd) Process

Section: Chapter Questions

Problem 3SP

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In response to the six primary physical control weaknesses that have been identified, make recommendations (one for each bullet). pls give other answers beside on the internet. The purchase transaction should not be authorized by the purchases. The inspection of receiving items should be on basis of blind copy of purchase order provided not by the packing slip. The inventory subsidiary ledger is updated by the inventory control. The recording in accounts payable subsidiary ledger is without the supporting documents as recorded only on invoice receiving. The journal vouchers and summary reports from accounts payable department, cash disbursement system and inventory control should be received by general ledger department. The cash disbursements journal and check register are not in use.
1. SEGREGATION OF FUNCTIONSWhich, if any, of the following situations representsimproper segregation of functions? Explain youranswer.a. The billing department prepares the customers’invoices and records the sale in the salesjournal.b. Mail room clerk opens cash receipts envelopesfrom customers and also prepares the remittancelist.c. Accounting clerk receives journal vouchers fromvarious departments and also posts to the GLaccounts.d. The sales department approves sales credit memosas the result of product returns and forwards these to the AR department, which adjusts the customeraccounts to reflect the return.
Each of the below describes a procedure consistent with a strong system of internal control except… Question 7 options: The customer order department determines when a sale has occurred and should be recorded. The accounts payable department agrees purchase requisitions, purchase orders, receiving reports, and invoices prior to payment. Quantities ordered are excluded from the receiving department copy of a purchase order so receiving personnel count and inspect merchandise received. The use of remittance advices for customers' payments on accounts receivable received in the mail.
A. Occurrence B. Completeness C. Rights and obligationsD. Allocation or valuationE. ClassificationF. ExistenceG. CutoffH. AccuracyI. UnderstandabilityFor each of the following control activities, identify the management assertion that best applies by placing the correct letter in the blank space below.___ 1. Match shipping documents with sales invoices before a sale is recorded.___ 2. Balance total of individual customers' receivables with the control account.___ 3. Sales manager approves taking discounts.___ 4. Computer check for billing the quantity shipped, list price, and total.___ 5. Account for numerical sequence of pre-numbered shipping documents.
For effective internal control, the accounts payable department generally should(1) stamp, perforate, or otherwise cancel supporting documentation after paymentis mailed.(2) ascertain that each requisition is approved as to price, quantity, and quality byan authorized employee.(3) omit information about the quantity ordered on the copy of the purchase orderforwarded to the receiving department prior to receipt of goods.(4) establish the agreement of the vendor’s invoice with the receiving report andpurchase order
Which, if any,of the followingsituations represent improper segregationof functions? Explain your answer. a. The billing deparment prepares the customers' invoices and records the sale in the sales journal. b. Mail room clerk opens cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts. d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return.
which, if any of the following situations represents improper segregation of functions? Explain your answer. a. the billing department prepares the customers' invoices and records the sale in the sales journal b. The mailroom clerk opens a cash receipt envelopes from customers and also prepared the remittance risk c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return.
Is the following a potential control weakness? Most data input in Marco Inc. is backed up by paper trails of source documents and other business papers. In addition, the firm uses an Internet service to back up all files on the Internet. Marco manually runs a backup at the end of each day. They have no other Internet presence other than an informational Website that does not allow potential customers to order merchandise. Briefly explain the potential mistatement and recommended correction.
Payable ICQ Items: Assertions, Tests of Controls, and Possible Errors or Frauds. Following is a selection of items from internal control questionnaires.1. Are purchase orders above a certain level approved by an officer?2. Are the quantity and quality of goods received determined at the time of receipt by receiving personnel independent of the purchasing department?3. Are vendors’ invoices matched against purchase orders and receiving reports before a liability is recorded?4. Are journal entries authorized at appropriate levels?Required:For each preceding item:a. Identify the management assertion to which it applies.b. Specify one test of controls auditors could use to determine whether the control was operating effectively.c. Give an example of an error or fraud that could occur if the control were absent or ineffective.d. Write a substantive procedure that could find errors or frauds that could result from the absence or ineffectiveness of the control items.
Which control activity is the entity implementing when all purchase orders above S5,000 should be authorized by a responsible senior ? Select one a. Adequate documents and records b. Independent checks on performance c. Proper authorization of transactions and activities d. Physical control over assets and records