Good internal controls include upon receiving checks from customers by mail, a responsible employee should A. Add the checks to the daily cash summary B. Verify that check is supported by prenumbered sales invoices C. Prepare a duplicate listing of checks received D. Record the checks in the cash receipts journal

Q: A petty cash system is designed to a. cash checks for employees b. handle cash sales c. pay small…

A: Petty Cash: This is the money that any business keeps aside for small expenses incurred in the…

Q: he following are commonly performed tests of controls and substantive tests of transactions audit…

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Q: Upon receipt of customers’ checks in the mail room, a responsible employee should prepare a…

A: Accounts receivable is the amount due to be received from customers on account of credit sales.

Q: The following procedures were recently installed by Raspberry Creek Company: After necessary…

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Q: In the final step of the control process the controller compares the records of the day's cash…

A: Internal Control: It is the rules, and procedures  that  is implemented by a company. Internal…

Q: Each of the following measures strengthens internal controlover cash receipts except:a. Factoring…

A: Internal Control is the process that allows a company to perform its best and adhere to the…

Q: Match each of the following cash receipt activities to the internal control principle to which it…

A: 1. A list of checks received in the mail is prepared - D. Document Procedure. 2. Total cash receipts…

Q: An auditor suspects that a client's cashier is misappropriating cash receipts for personal use by…

A: Lets understand the basics. Lapping is a method in which payment received from the account…

Q: The mailroom employees send all remittances and remittance advices to the cashier. The cashier…

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Q: When a petty cash fund is used, which of the following is true? *       A. The petty cashier’s…

A: Solution: "The reimbursement of the petty cash fund should be credited to the cash account" this is…

Q: Which of the following generally would be considered good internal control of cash disbursements? a.…

A: Cash controls:   Management must have a safety measure to protect all assets against possible…

Q: ich of the following procedures would an auditor most likely perform to test trols relating to…

A: The given scenario relates with cash receipts. To check the authenticity of the transaction the…

Q: The bank reconciliation Select one: A. is sent to the bank for verification B. is for information…

A: Introduction:- Bank reconciliation play vital role in every organization. It identify the balance of…

Q: Which of the following would be the best protection for a company that wishes to prevent the…

A: Lapping:   Fraud done by an employee of the organization to hide the payments to be received is…

Q: When a petty cash fund is first established and reimbursed, the journal entries to record the…

A: when Petty cash Fund is First Establish the journal entry is   Petty cash A/c Dr.          To Cash…

Q: Choose the one correct answer. Which of the following is not an appropriate question in an ICQ? *…

A: Internal Control Questionnaire -ICQ : ICQ is an important tool for conducting an audit. It is…

Q: Identify each of the following statements as elther true or false. a. It is good internal control…

A: the correct answer with proper explanation of above statement are as follows.

Q: Which of the following controls would best prevent the lapping of accounts receivable?a. Segregate…

A: Fraud: Fraud is a malicious act committed by people to fulfill their personal benefits. In case of…

Q: A petty cash system is designed to a. encash checks of selected employees. b. handle cash sales. c.…

A: Solution: Petty cash is a small amount of money for paying petty expenses that are too small to…

Q: Which of the following scenarios reduces the risk of an employee fraud? Group of answer choices An…

A: Accountant was in charge and knowledge of vendor balances. Hence, chances for fraud in the form of…

Q: Which of the following are characteristics of an effective control of cash disbursements? I.…

A: Solution: Following are the characteristics of an effective control of cash disbursements: I.…

Q: Which of the following is not an example of control procedures to safeguard cash received from…

A: Cash is one of the important current asset of the business. It's management and valuation is very…

Q: Douglas and Son, Inc., uses the following process for its cash receipts: The company typically…

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Q: Which of the following items appearing on a bank reconciliation require a journal entry to bring the…

A: Bank reconciliation statement is a statement which is prepared to reconcile cash balance as per cash…

Q: When auditors perform the bank reconciliation test, what would be the appropriate audit procedure…

A: Auditing procedures of Bank Reconciliation Bank reconciliation is one of the important part in the…

Q: Which of the following statements are true regarding the control of cash receipts and cash payments?…

A: To control cash receipts and cash payments, Over-the-counter cash sales should be recorded on a cash…

Q: At Martinez Company, checks are not prenumbered because both the purchasing agent and the treasurer…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Cash receipts should be deposited on the day of receipt or the following business day. Select the…

A: Comparing the daily cash receipts with the bank deposits will reveal the promptness of deposit of…

Q: Management uses a voucher system to help control and monitor cash payments. Which one or more of the…

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Q: Internal Control of Cash Receipts The procedures used for over-the-counter receipts are as follows.…

A: Internal controls are those policies and procedures that are implemented by an business organization…

Q: Payment by check is an important internal control over cash payments because the check must be…

A: Payment check: It is a method of doing the payment for any invoice raised by the vendor, the other…

Q: The following procedures were recently implemented at Pampered Pets, Inc. For each procedure,…

A: Internal control: Internal control is a process that ensures continuous reliability of…

Q: What internal control procedure ( s ) would provide protection against the following threats ? An…

A: Internal control: this is a procedure in auditing which helps the entity in maintaining the…

Q: The following are deficiencies in internal controls over cash. a. When the cashier isn't available,…

A: Inadequacies in the deployment or execution of internal controls are known as internal control…

Q: Which internal control activity is being violated when the cashier in a retail store also records…

A: Segregation of duties is being violated when the cashier in a retail store also records the daily…

Q: Which of the following is an effective internal control for cash payments? A.Payments should be…

A: Cash is one of the important current asset of the business. It's valuation and management is very…

Q: he accounting clerk pays all obligations by pre numbered checks. What are the strengths and…

A: It was must obligatory in the internal control over the cash payments which are taken care of by the…

Q: In your audit of Ginko Company, you have received a cash confirmation and a cutoff statement from…

A: Substantive audit procedures is performed by the auditors to obtain evidence that supports the…

Q: Which of the following internal control activities most likely would deter lapping of collections…

A: Internal Control: Internal control is a mechanism or procedure that the company implements so that…

Q: Evaluating Internal Control of Cash The following procedures were recently installed by Raspberry…

A: Internal control of cash: Internal control is used by the bank to protect its money so that there is…

Q: In testing controls over cash disbursements, an auditor most likely would determine that the person…

A: The question is related to Auditingbof Cash disbursement.

Q: Knowledge Check 01 Which of the following is a correct statement regarding control of…

A: Over-the counter receipts: It refers to the process of trading the securities for the companies not…

Q: Which of the following would the auditor consider to be an incompatible operation if the cashier…

A: An auditor seems to be an individual who checks the authenticity of commercial transactions that…

Q: For each of the following, give two examples of physical control that the client can use to protect…

A: Physical control includes how the organization prevents unauthorized use of the asset and also…

Q: Which is not a key element of internal control over cash receipts? a. daily recording of all cash…

A: Solution- Considering all the small and large business it is not possible to make daily Bank…

Q: Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of…

A: Internal controls are policies and procedures put in place to ensure the continued reliability of…

Q: Match each of the following cash payment activities to the internal control principle to which…

A: The internal control principles are referred to as all procedures, plans, and controls implemented…