Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 3, Problem 10MCQ
To determine
Identify a situation which is not a violation of segregation of duties.
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Which, if any, of the following situations represent improper segregation of functions?a. The billing department prepares the customers’ invoices, and the accounts receivable department posts to the customers’ accounts.b. The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are performed by the accounts receivable department.c. The shipping department ships goods that have been retrieved from stock by warehouse personnel.d. The general accounting department posts to the general ledger accounts after receiving journal vouchers that are prepared by the billing department.
Which, if any, of the following situations represent improper segregation of functions?A. The billing department prepares the customers ‘invoices, and the AR department posts to thecustomers’ accounts.B The sales department approves sales credit memos as the result of product returns, and subsequentadjustments to the customer accounts are performed by the AR department.C The shipping department ships goods that have been retrieved from stock by warehouse personnel.D. The general accounting department posts to the general ledger accounts after receiving journalvouchers that are prepared by the billing department.
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.
Chapter 3 Solutions
Accounting Information Systems
Ch. 3 - What is ethics?Ch. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - What are the three ethical principles that may...Ch. 3 - What is computer ethics?Ch. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - What are the computer ethical issues regarding...Ch. 3 - What are the computer ethical issues regarding...
Ch. 3 - What are the computer ethical issues regarding...Ch. 3 - Prob. 12RQCh. 3 - What are the computer ethical issues regarding the...Ch. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - What are the computer ethical issues regarding...Ch. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Name the three fraud-motivating forces.Ch. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - What is lapping?Ch. 3 - Prob. 25RQCh. 3 - What is bribery?Ch. 3 - What is economic extortion?Ch. 3 - Prob. 28RQCh. 3 - Define check tampering.Ch. 3 - What is billing (or vendor) fraud?Ch. 3 - Prob. 31RQCh. 3 - Prob. 32RQCh. 3 - Prob. 33RQCh. 3 - Prob. 34RQCh. 3 - Prob. 35RQCh. 3 - Prob. 36RQCh. 3 - Prob. 37RQCh. 3 - Prob. 38RQCh. 3 - Prob. 39RQCh. 3 - Prob. 40RQCh. 3 - Prob. 41RQCh. 3 - Give one example of an error that a check digit...Ch. 3 - Prob. 43RQCh. 3 - Prob. 44RQCh. 3 - What is the objective of a transaction log?Ch. 3 - Prob. 46RQCh. 3 - Prob. 47RQCh. 3 - Prob. 48RQCh. 3 - Prob. 49RQCh. 3 - Prob. 50RQCh. 3 - Distinguish between ethical issues and legal...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - The estimates of losses annually resulting from...Ch. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Distinguish between exposure and risk.Ch. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 19DQCh. 3 - Prob. 20DQCh. 3 - Prob. 21DQCh. 3 - Prob. 22DQCh. 3 - Prob. 23DQCh. 3 - Prob. 24DQCh. 3 - Prob. 25DQCh. 3 - Prob. 26DQCh. 3 - Prob. 27DQCh. 3 - Prob. 28DQCh. 3 - Explain the problems associated with inappropriate...Ch. 3 - Prob. 30DQCh. 3 - Prob. 31DQCh. 3 - Prob. 32DQCh. 3 - Prob. 33DQCh. 3 - Prob. 34DQCh. 3 - Prob. 35DQCh. 3 - Prob. 36DQCh. 3 - Prob. 37DQCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 12MCQCh. 3 - Which of the following controls would best prevent...Ch. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - The fraud scheme that is similar to the concept of...Ch. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - FRAUD SCHEME - HEALTH INSPECTOR A city health...Ch. 3 - FRAUD SCHEME PURCHASING AGENT A purchasing agent...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - EXPENSE ACCOUNT FRAUD While auditing the financial...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20P
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- There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.arrow_forwardAuthorization 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).arrow_forwardA company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? A. No changes would be made since the person paying the bills is different from the person ordering the inventory. B. The person in accounts payable should generate the purchase order. C. The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. D. The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people.arrow_forward
- which, if any of the following situations represents improper segregation of functions? Explain your answer. a. the billing department prepares the customers' invoices and records the sale in the sales journal b. The mailroom clerk opens a cash receipt envelopes from customers and also prepared the remittance risk c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return.arrow_forwardWhich of these arrangements of duties could most likely lead to an embezzlement or theft?a. The inventory warehouse manager has responsibility for making the physical inventory observation and reconciling discrepancies to the perpetual inventory records.b. The cashier prepared the bank deposit, endorsed the checks with a company stamp, and delivered the cash and checks to the bank for deposit (no other bookkeeping duties).c. The accounts receivable clerk received a list of payments received by the cashier so he could make entries in the customers’ accounts receivable subsidiary accounts.d. The financial vice president received checks made out to suppliers and the supporting invoices, signed the checks, and mailed the checks.arrow_forwardWhich, if any,of the followingsituations represent improper segregationof functions? Explain your answer. a. The billing deparment prepares the customers' invoices and records the sale in the sales journal. b. Mail room clerk opens cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts. d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return.arrow_forward
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