CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 6, Problem 6.32C
1.
To determine
Case summary: H was appointed as the vice president of company BS in region M which provides check processing services for small banks. These small banks send checks to BS that involve checks related to deposits or payments and record the data on each check in the database of the computer system. Then, the company BS sends the electronic data to the nearest FR Bank which is a check-clearing center. Region M involved three check processing centers located in B, G, and C and H required the financial report for the last fiscal year from J (the controller of center C) but she summoned J for an explanation when she reviewed the report.
The financial advantage or disadvantage of closing center C and redistributing its work to other processing centers in the region according to the standpoint of the company as a whole.
2.
To determine
Case summary: H was appointed as the vice president of company BS in region M which provides check processing services for small banks. These small banks send checks to BS that involve checks related to deposits or payments and record the data on each check in the database of the computer system. Then, the company BS sends the electronic data to the nearest FR Bank which is a check-clearing center. Region M involved three check processing centers located in B, G, and C and H required the financial report for the last fiscal year from J (the controller of center C) but she summoned J for an explanation when she reviewed the report.
The reason for it might be in H’s self-interest to shut down center C’s facility and ethical consideration of H.
3.
To determine
Case summary: H was appointed as the vice president of company BS in region M which provides check processing services for small banks. These small banks send checks to BS that involve checks related to deposits or payments and record the data on each check in the database of the computer system. Then, the company BS sends the electronic data to the nearest FR Bank which is a check-clearing center. Region M involved three check processing centers located in B, G, and C and H required the financial report for the last fiscal year from J (the controller of center C) but she summoned J for an explanation when she reviewed the report.
The influence of the
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Douglas and Son, Inc., uses the following process for its cash receipts: The company typically receives cash and check sales each day and places them in a single drawer. Each Friday, the cash clerk records the amount of cash received and deposits the money in the bank account. Each quarter, the controller requests information from the bank necessary to prepare a bank reconciliation.Required:Discuss Douglas and Son’s internal control procedures related to cash receipts, noting both weaknesses and strengths.
Island Trading Co., a client of your CPA firm, has requested your advice on the following problem. It has three clerical employees who must perform the following functions:
(1) Maintain general ledger.
(2) Maintain accounts payable ledger.
(3) Maintain accounts receivable ledger.
(4) Maintain cash disbursements journal and prepare checks for signature.
(5) Issue credit memos on sales returns and allowances.
(6) Reconcile the bank account.
(7) Handle and deposit cash receipts.
Assuming that there is no problem as to the ability of any of the employees, the company requests your advice on assigning the above functions to the three employees in such a manner as to achieve the highest degree of internal control. It may be assumed that these employees will perform no other accounting functions than the ones listed and that any accounting functions not listed will be performed by persons other than these three employees.
a. List four possible unsatisfactory combinations of the…
Match each of the following cash payment activities to the internal control principle to which itbest relates. Enter the appropriate letter in the space provided.1. The business manager has the only key to thecheck-signing equipment.2. The purchasing manager orders all goods andservices for the business.3. A bank reconciliation is prepared monthly.4. Prenumbered checks are used for all payments.5. The company asks suppliers to deliver their merchandise to the warehouse but mail their invoicesto the accounting department.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verify
Chapter 6 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
Ch. 6 - Prob. 6.1QCh. 6 - Prob. 6.2QCh. 6 - Prob. 6.3QCh. 6 - Prob. 6.4QCh. 6 - Prob. 6.5QCh. 6 - Prob. 6.6QCh. 6 - Prob. 6.7QCh. 6 - Prob. 6.8QCh. 6 - Prob. 6.9QCh. 6 - Prob. 6.10Q
Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - Prob. 6.13QCh. 6 - Prob. 6.14QCh. 6 - Prob. 6.15QCh. 6 - Prob. 6.16QCh. 6 - Prob. 1AECh. 6 - Prob. 1TF15Ch. 6 - Prob. 6.1ECh. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prob. 6.5ECh. 6 - Prob. 6.6ECh. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.18ECh. 6 - Prob. 6.19PCh. 6 - Prob. 6.20PCh. 6 - Prob. 6.21PCh. 6 - Prob. 6.22PCh. 6 - Prob. 6.23PCh. 6 - Prob. 6.24PCh. 6 - Prob. 6.25PCh. 6 - Prob. 6.26PCh. 6 - Prob. 6.27PCh. 6 - Prob. 6.28PCh. 6 - Prob. 6.29PCh. 6 - Prob. 6.30PCh. 6 - Prob. 6.31CCh. 6 - Prob. 6.32CCh. 6 - Prob. 6.33C
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