T.o.p.i.c.:. .M.a.n.a.g.i.n.g. .C.r.e.d.i.t. A.l. .a.n.d. .A.r.c.e.e. .S.a.d.i.c.o.n. .h.a.v.e. .a. .h.o.m.e. .w.i.t.h. .a.n. .a.p.p.r.a.i.s.e.d. .v.a.l.u.e. .o.f. .₱9,000,000 a.n.d. .a. .m.o.r.t.g.a.g.e. .b.a.l.a.n.c.e. .o.f. .o.n.l.y. ₱4,500,000 G.i.v.e.n. .t.h.a.t.,. .a.n. .S.&.L. .i..s. .w.i.l.l.i.ng. .t.o. .l.e.n.d. .m.o.n.e.y. .a.t. .a. .l.o.a.n.-.t.o.-.v.a.l.u.e. .r.a.t.i.o. .o.f. 75%,. .h.o.w. .b.i.g. .a. .h.o.m.e. .e.q.u.i.t.y. .c.r.e.d.i.t. .l.i.n..e .c.a.n. .A.l. .a.n.d. .A.r.c.e.e. .o.b.t.a.i.n.?. .H.o.w. .m.u.c.h.,. .i.f. .a.n.y.,. .o.f. ..t.h.i.s. .l.i.n.e. .w.o.u.l.d. .q.u.a.l.i.f.y. .a.s. .t.a.x.-.d.e.d.u.c.t.i.b.l.e. .i.n.t.e.r.e.s.t. .i.f. .t.h.e.i.r. .h.o.u.s.e. .o.r.i.g.i.n.a.l.l.y. .c.o.s.t. ₱5,000,000.00?

Auditor conducts employee interview as a part of evaluation of internal control a. To understand whether the employees are satisfied or not b. To determine how well individuals are trained for their job c. To understand the opinion of employees about the management d. To understand the opinion of employees about the company

Allowing only certain employees to order goods and services for the company is an example of what internal control procedure? a.Proper authorization b.Independent verification c.Segregation of duties d.Safeguarding of assets and records

5. A company encourages employees to call an anonymous hotline if they believe other employees are circumventing internal control features. Is this related to control activities of a company?

LO B-5B.52 Other Responsibilities and Practices Cases. Read the following cases. For each, statewhether the action or situation shows a violation or potential for violation of the AICPACode of Professional Conduct; if so, explain why, and cite the relevant rule.a. CPA Ron Stout completed a review of the unaudited financial statements of Wolfe Gifts.Arvida Wolfe was very displeased with the report. An argument ensued, and she toldStout never to darken her door again. Two days later, she telephoned Stout and demandedthat he return (1) Wolfe's cash disbursement journal, (2) Stout's documentation scheduleof adjusting journal entries, (3) Stout's inventory analysis documentation, and (4) allother documentation prepared by Stout. Wolfe had not yet paid her bill, so Stout repliedthat state law gave him a lien on all of the records and he would return them as soon asshe paid his fee.b. CPA O'Dell May teaches a CPA review course at the university. He needs problem andquestion material for…

controls prevent, detect and correct transaction errors and fraud. A General B Detective (C) Preventive Application

What is a letter of comments?a. A letter the SEC sends to a company indicating needed changes or clarifications in a registration statement.b. A questionnaire supplied to the SEC by a company suggesting changes in Regulation S–X.c. A letter included in a Form 10–K to indicate the management’s assessment of the company’s financial position.d. A letter composed by a company asking for information or clarification prior to the filing of a registration statement.

What types of physical controls are in place to protect company assets (assets include inventory, cash, equipment, etc.)? What types of controls are in place to protect data (such as company information or customer personal information)? Choose one more internal control principle from this module, and explain how the company implements that principle and the purpose?

Client Control Procedures and Audit Tests of Controls. Exhibit 7.64.1 contains an arrangement of examples of transaction errors (lettered a–g) and a set of client control procedures and devices (numbered 1–15).Required:For each client control procedure numbered 1–15, write a test of controls that could produce evidence on the question of whether the client’s control procedure has been implemented and is in operation.

Answer the following questions. a. Which department is responsible for initiating the purchase of materials? b. What is the name of the document generated by the department identified in (a) above? c. Typically, multiple copies of a purchase order are prepared. One copy should go to the vendor, and one is retained in the purchasing department. To achieve proper control, which other departments should receive copies of the purchase order? d. What documents does the accounts payable clerk review before setting up a liability? e. Which document transfers responsibility for goods sold to a common carrier?