type of impropriety that is hard to find is cheating that comes from: a. More transaction presentation b. Transactions are not recorded c. Transactions are recorded on subsidiary companies d. Receivables from related parties

type of impropriety that is hard to find is cheating that comes from: a. More transaction presentation b. Transactions are not recorded c. Transactions are recorded on subsidiary companies d. Receivables from related parties

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 6MC: Which of the following is false about accounting information systems? A. They provide reports that...

See similar textbooks

Related questions

Q: Which of the following is NOT an issue with the Bradmark internal controls as it pertains to the…

Q: Business damages, as a result of financial fraud, directly impact the operations of any company.…

A: Fraud is an intentional act which is committed in order to defraud a group of people for the purpose…

Q: Which of the following error will be called as an Error of Commission?

A: The error of principle states that it is a error when entries are posted correct for amount but in…

Q: Eva Johnson handles cash receipts and has the authority to write off accounts receivable. This…

A: Hi Since there are many sub parts of this question, so we will answer first four sub parts only.

Q: a. Identify the type of fraud that took place. (e.g. misappropriation of assets o fraudulent…

A: a. The type of fraud that took place, in this case, is Misappropriation of assets. In this Case,…

Q: Authorization of transactions is a key control in most organizations.Authorizations should not be…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Cash receipts from sales on account have been misappropriated. Which of the following acts would…

A: An auditor is an individual approved to survey and check the precision of budgetary records and…

Q: Why should businesses shift to an electronic accounting system? How can controls deter fraudulent…

A: Electronic accounting system entails use of computer based or internet based accounting tools. In an…

Q: The effect of a debit memo on the company’s books decreases an asset. On the bank’s records, the…

A: A debit memo is a charge made to the customer account for some debit adjustments. It reduces the…

Q: Which of the following statement is not correct? Employees who approve the payment should not…

A: The internal control creates framework for ruling the business operations and protects from…

Q: If the objective of a test of detail of transaction is to detect overstatement of sales, the…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which of the following does not demonstrate internal control practices? a. Allowing access of…

A: Internal control is a set of measures instituted by management and designed to help. achieve the…

Q: A voucher system is a set of procedures and approvals: Multiple Choice Designed to control cash…

A: A voucher system is maintained to identify the authenticity of a transaction particularly cash…

Q: Which of the following fraudulent activities most likely could be perpetrated due to the lack of…

A: The auditor Is responsible for forming an opinion on the financial statement and the main reason for…

Q: SLO-4.1. Which of the following would not qualify as an internal control procedure within a…

A: Internal controls are the procedures ensuring that the financial reporting done by the business is…

Q: What is a critical element of internal control in the handling of receivables by a business? Explain…

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

Q: Business damages, as a result of financial fraud, directly impact the operations of any company.…

A: Fraud includes activities such as theft, corruption, conspiracy, bribery etc. Fraud can occur in any…

Q: Activities related to procurement and disbursements are part of the financial control process. a.…

A: Procurements involve the process of acquiring goods for sale or manufacture. Disbursements involve…

Q: 1. SEGREGATION OF FUNCTIONS to the AR department, which adjusts the customer accounts to reflect the…

A: Segregation of duties means when the work or task is distributed among various departments and…

Q: Proper segregation of duties reduces opportunities to allow any employee to be in a position to…

A: The correct Option is Option “D”. D. Record and conceal fraudulent transactions in the normal course…

Q: The primary purpose of internal controls in managing a business is to:

Q: Which statement is NOT correct for an expenditure system with proper internal controls?a. Cash…

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

Q: Which of the following is not a purpose of internal controls? Guarantee profits Protect…

A: Internal control can be defined as a system to follow the rules and mechanism in the organisation so…

Q: The notes receivable is debited by the bookkeeper instead of accounts receivable. What is the effect…

A: The assets have the debit balance and liabilities have the credit balance. Every transaction in the…

Q: Indicate whether the statement is true or false. Internal control procedures should be designed to…

A: In accounting and auditing perspective, Internal control means fulfilling organisational objectives…

Q: which of these substantive procedures is not used to obtain evidence about contingencies?a. Scanning…

A: Contingencies are the future expectation of losses which can happen in the organisation. Auditor…

Q: Indicate which statements are true and which are false. Separation of recordkeeping for assets from…

A: One of internal control policy to safeguard assets is segregation of duties which is separation of…

Q: (1) How does double-entry bookkeeping helpeliminate errors? (2) Why is accrual-based…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: 2- Which one of the following statements is false for accounts receivables management? Written…

A: Accounts receivable management involves devising the policies and measures to ensure that customers…

Q: A tradeoff between enhancing qualitative characteristics often occurs. For example, when a company…

A: Companies are most likely to make trade off s between which of the following when preparing…

Q: False Commercial agencies are types of commercial professions that facilitate business transactions.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is incorrect regarding subsidiary ledger? a. The accounts receivable ledger…

A: A subsidiary ledger is a collection of similar accounts whose consolidated balances are equal to the…

Q: Explain the impact of the fraud in business according to accounting information system.

A: AIS (Accounting Information System) defines fraud as an action that can affect many people within…

Q: At Radiant, Inc., the sales department is also responsible for recording cash transactions as it…

A: THE SEPARATION OF DUTIES IN AUDITING IS THE IDEA OF REQUIRING MORE THAN ONE PERSON TO COMPLETE…

Q: Which of the following evidence provides the least assurance of reliability? A. Accounts receivable…

A: Audit evidences can be collected from internal and external sources. Internal evidences are based on…

Q: Dicuss the techniques an imposter can use to breach into an accounting information system.

A: Computer Fraud: A computer fraud is an unlawful act committed by the employees in an organization…

Q: A serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and…

A: In this question we tell about a serious exposure in the revenue cycle is customer…

Q: Vendor invoices are recorded for items that were never ordered by the company. Which of the…

A: If the invoices are recorded for items that were never ordered by the company then such an issue can…

Q: Which of the following is the primary reason why a company sells it receivables to another entity?…

A: Accounts receivable represents the amount that is due to be received by the customer of the company.…

Q: Why is it important for companies to analyze revenue and accounts receivable? How can these areas…

A: Revenue is commonly referred to as the income received from business operations. It includes…

Q: Authorization of transactions is considered a key control in most organizations. Authorizations…

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

Q: As part of a strong internal control system, which of the following accounting duties needsto be…

A: Internal control system: It can be defined as a structure consisting of the procedures, rules, and…

Q: Authorization of transactions is a key control in most organizations. Authorizations should…

A: Certain actions can only be performed only after certain authorization from the required…

Q: The principle of establishing responsibility does not include approval of transactions. independent…

A: Establishing responsibility is a Principles of internal control activities

Q: If a company reported fi ctitious revenue, it could try to cover up its fraud by: B . increasing…

A: Companies across the world report fictitious revenue for various reasons. The government tried to…

Q: primary difference between fraud and error in financial reporting

Question

A type of impropriety that is hard to find is cheating that comes from:
a. More transaction presentation
b. Transactions are not recorded
c. Transactions are recorded on subsidiary companies
d. Receivables from related parties

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Which of the following is false about accounting information systems? A. They provide reports that people analyze. B. They prevent errors and stop employees from stealing inventory. C. They are designed to gather data about the companys transactions. D. They consist of processes that involve input of data from source documents, processing, output, and storage.
Authorization of transactions is a key control in most organizations. Authorizations should not be made by individuals who have incompatible functions. For each transaction (listed as A through I), indicate the individual or function (e.g., the head of a particular department) that should have the ability to authorize that transaction. Briefly provide a rationale for your answer. a. Writing off old accounts receivable. B. Committing the organization to acquire another company that is half the size of the existing company. C. Paying an employee for overtime. D. Shipping goods on account to a new customer. E. Purchasing goods from a new vendor. F. Temporarily investing funds in common stock investments instead of money market funds. G. Purchasing a new line of manufacturing equipment to remodel a production line at one of the company’s major divisions (the purchase represents a major new investment for the organization). H. Replacing an older machine at one of the company’s major divisions. I. Rewriting the company’s major computer program for processing purchase orders and accounts payable (the cost of rewriting the program will represent one quarter of the organization’s computer development budget for the year).
Indicate which statements are true and which are false. Separating the responsibility for a transaction between two or more individuals or departments will not help prevent someone from creating a fictitious invoice and paying the money to himself.
Which of the following would assist an entity in cat and prevent fraud? a. Accounting reconciliations b. Segregation of duties c. All the options d. Performance reviews
1. Which of the following is the primary reason why a company sells it receivables to another entity? a) to improve the quality of its credit granting process b) to comply with customer agreements c) to limit its legal ability d) to accelerate access to amount collected
Which of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.
what is Segregation of Duties in accounting and how it can prevent fraud?
Which of the following error will be called as an Error of Commission? a. A transaction is written partially in the books of accounts b. A transaction is written without knowing the fundamental knowledge of accounting c. A transaction is posted wrongly in the books of accounts d. A Transaction is not recorded completely in the books of accounts
Authorization of transactions is a key control in most organizations.Authorizations should not be made by individuals who haveincompatible functions. For each transaction (listed as A through I),indicate the individual or function (e.g., the head of a particular department)that should have the ability to authorize that transaction. Brieflyprovide a rationale for your answer.A. Writing off old accounts receivable.B. Committing the organization to acquire another company that ishalf the size of the existing company.C. Paying an employee for overtime.D. Shipping goods on account to a new customer.E. Purchasing goods from a new vendor.F. Temporarily investing funds in common stock investments insteadof money market funds.G. Purchasing a new line of manufacturing equipment to remodel aproduction line at one of the company’s major divisions (the purchaserepresents a major new investment for the organization).H. Replacing an older machine at one of the company’s majordivisions.I. Rewriting…
Which of the following is not a purpose of internal controls? Guarantee profits Protect assets Adherence to company policies Make fraud more difficult Accurate accounting records
In a single-entry system, what financial aspect is challenging to detect due to its limited recording approach? A. Outstanding liabilities B. Fraud C. Revenue D. Gross profit
nternal control does not consist of policies and procedures that Select one: a. Ensure that business information is accurate b. Protect assets from misuse c. Guarantee the company will earn a profit d. Ensure employees and managers comply with laws and regulations