Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

Question

Want to see the full answer?

Answer 1

Question

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Items 1 through 10 present various internal controlstrengths or internal control deficiencies.1. Credit is granted by a credit department.2. Once shipment occurs and is recorded in the sales journal, all shipping documentsare marked “recorded” by the accounting staff.3. Sales returns are presented to a sales department clerk who prepares a written,prenumbered receiving report.4. Cash receipts received in the mail are received by a secretary with no recordkeepingresponsibility.5. Cash receipts received in the mail are forwarded unopened with remittance advicesto accounting.6. The cash receipts journal is prepared by the treasurer’s department.7. Cash is deposited weekly.8. Statements are sent monthly to customers.9. Write-offs of accounts receivable are approved by the controller.10. The bank reconciliation is prepared by individuals independent of cash receiptsrecordkeeping.a. For each of the preceding 1–10 items, indicate whether the item represents an:A. Internal control strength for…

Determine whether each cash receipts procedure is an internal control strength or weakness. Cash receipts 1. If a sales clerk makes an error in recording a cash sale, they can access the register's electronic record to correct the transaction. 2. One of the two employees tasked with opening mail is also the recordkeeper for the business. 3. The supervisor has access to both cash and the accounting records. 4. Receipts are given to customers for only sales that are above $20. 5. Sales clerks are not required to enter the sale in the register after each transaction. Instead, the company gives employees flexibility to enter sales at the end of the day or week. 6. The recordkeeper of cash transactions is also in charge of depositing cash receipts in the bank. Strength or Weakness

explain whether they are considered improper segregation of functions? a. The billig department prepares the customers, invoices and records the sale in the sales journal b. Mailroom clerk open cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk recives journal vouchers from various departments and post togeneral ledger accounts d. The sales department approves sales credit memos as the result of production returns and forwards these to the Account Receivable department, which adjusts the customer accounts to reflect the return.

Answer 2

Question

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Answer 6

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

Answer 7

Chapter 14, Problem 33DQP

(a).

To determine

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

Answer 8

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

Answer 9

(b).

To determine

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

Answer 10

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Answer 11

(c).

To determine

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQ Ch. 14 - Prob. 3RQ Ch. 14 - Prob. 4RQ Ch. 14 - Prob. 5RQ Ch. 14 - Prob. 6RQ Ch. 14 - Prob. 7RQ Ch. 14 - Prob. 8RQ Ch. 14 - Prob. 9RQ Ch. 14 - Prob. 10RQ

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

Solution Summary: The author identifies the audit related objectives for the items identified as internal control strength for sales and collection cycle.

Determine whether the items represent internal control strength or deficiency for the sales and collection cycles

Identify the audit related objectives for the items identified as internal control strength for sales and collection cycle.

Determine the nature of deficiency for the items identified as internal control deficiency for the sales and collection cycle.

Want to see the full answer?

Chapter 14 Solutions