Homework Help is Here – Start Your Trial Now!
Business
Accounting
Several controls currently used at the Ayuyao Inn are listed below: Preventive/ Accounting/ Detective Control Administrative 1. The employee time clock is located just outside the manager's office. 2. The Ayuyao Inn uses a cash register. 3. Only the front office supervisor may approve room sales allowance. 4.An external auditor conducts a surprise cash audit quarterly. 5. Cash drawers must be closed after each sale in all revenue centers. 6. Supplier invoices are reconciled to the suppliers' monthly statements. 7. Vegetables are stored in coolers at the proper temperatures. 8. Cash receipts are deposited intact and on a daily basis. 9. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 10. The internal auditor prepares the monthly bank reconciliation. Required: 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. 2. If you believe a given control may be both P and D or AC and AD, provide your reasoning.

Several controls currently used at the Ayuyao Inn are listed below: Preventive/ Accounting/ Detective Control Administrative 1. The employee time clock is located just outside the manager's office. 2. The Ayuyao Inn uses a cash register. 3. Only the front office supervisor may approve room sales allowance. 4.An external auditor conducts a surprise cash audit quarterly. 5. Cash drawers must be closed after each sale in all revenue centers. 6. Supplier invoices are reconciled to the suppliers' monthly statements. 7. Vegetables are stored in coolers at the proper temperatures. 8. Cash receipts are deposited intact and on a daily basis. 9. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 10. The internal auditor prepares the monthly bank reconciliation. Required: 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. 2. If you believe a given control may be both P and D or AC and AD, provide your reasoning.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 5.1P
See similar textbooks
icon
Related questions
Question
100%
Please answer 1-3 only. Full instructions below the table. Thank you!
Exercise 2 Several controls currently used at the Ayuyao Inn are listed below: Preventive/ Accounting/ Detective Control Administrative 1. The employee time clock is located just outside the manager's office. 2. The Ayuyao Inn uses a cash register. 3. Only the front office supervisor may approve room sales allowance. 4.An external auditor conducts a surprise cash audit quarterly. 5. Cash drawers must be closed after each sale in all revenue centers. 6. Supplier invoices are reconciled to the suppliers' monthly statements. 7. Vegetables are stored in coolers at the temperatures. 8. Cash receipts are deposited intact and on a daily basis. proper 9. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 10. The internal auditor prepares the monthly bank reconciliation. Required: 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. 2. If you believe a given control may be both P and D or AC and AD, provide your reasoning.
Transcribed Image Text:Exercise 2 Several controls currently used at the Ayuyao Inn are listed below: Preventive/ Accounting/ Detective Control Administrative 1. The employee time clock is located just outside the manager's office. 2. The Ayuyao Inn uses a cash register. 3. Only the front office supervisor may approve room sales allowance. 4.An external auditor conducts a surprise cash audit quarterly. 5. Cash drawers must be closed after each sale in all revenue centers. 6. Supplier invoices are reconciled to the suppliers' monthly statements. 7. Vegetables are stored in coolers at the temperatures. 8. Cash receipts are deposited intact and on a daily basis. proper 9. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 10. The internal auditor prepares the monthly bank reconciliation. Required: 1. Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. 2. If you believe a given control may be both P and D or AC and AD, provide your reasoning.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Personal Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Accounting Information Systems
Accounting Information Systems
Finance
ISBN:
9781337552127
Author:
Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS