a)
To determine: The risks of the given function using the given table.
Introduction:
b)
To determine: The controls and technology of the given function using the given table.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
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- Internal ControlsThink of possible controls over (Explain)1.) cash2) receivables3.) inventories.arrow_forwardWhich of the following assets require the strongest of internal controls? Group of answer choices 1.credit cards 2.computer equipment 3.inventory 4.casharrow_forwardcomparing the cash balances on its bank statement with the cash balances in the accounting recordsA. Bank ConfirmationB. Bank ReconcilationProcess of identifying, evaluating and deciding how to manage the risks.A. Risk AssessmentB. Risk Managementarrow_forward
- Which of the following assets require the strongest of internal controls?A. inventoryB. credit cardsC. computer equipmentD. casharrow_forwardWhich one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.arrow_forwardWhat type of financial information are accessed by the users to make decisions? a. Composition of the management b. Bank accounts of the company c. Property of the company d. Expected future cash inflowsarrow_forward
- Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerb. ___________________occurs when management prepares misleading financial statementsarrow_forwardWhy should cash revenues and credit client sales be quickly recorded and reported?arrow_forwardIdentify and explain the components of IT Bank's Balance Sheet?arrow_forward
- 1. This refers to the funds that are tied up in transit or in the banking system 2. A type of risk where the issuer of the security will not pay interest or principalarrow_forwardThis refers to a bank that has agreement with the clearinghouse to exchange checks. A. Commercial Bank B. Correspondent Bank C. Universal Bank D. Concentration Banking 2. Firms hold cash for the purpose of taking advantage of investment opportunities. A. Precautionary Motive B. Transaction Balance C. Compensating Balance D. Speculative Motive 3. This refers to the process of monitoring and analyzing the amount of cash needed and how it can be generated. A. Cash Monitoring B. Cash Balances C. Cash Management D. Cash Forecastingarrow_forwardWhich of the following is an effective internal control for cash payments? A.Payments should be authorised before they are made B.Payments to suppliers should be made as quickly as possible C.An experienced accountant should have total responsibility for all cash payment functions D.Supporting documentation should be destroyed immediately afterpayment to avoid incorrectly paying twicearrow_forward
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