Explanation Internal Control: Internal control refers to the policies, and plans of the business organization along with other measures with a view to safeguard its assets, encourage the employees to adhere to the plans, to improve on the operational efficiency, and to ensure correct and reliable accounting information. Five elements of internal control: • Control Environment: Control Environment refers to the attitude of top brass of the company or the corporate culture. The top brass of the company must set the tone to improve the morale for rest of the employees of the business. • Risk assessment: The business must be able identify the risk associated with it, and accordingly use the internal control to safeguard its assets and ensures fairness in presentation in accounting information. • Control procedures: The objective of setting the control procedure is to ensure that the business achieves its objectives. • Monitoring controls: The internal control used in the business is being monitored by the internal auditors who are hired by the business, to ensure that the employees are adhering to the policies of the business and running the operations efficiently. The external auditors on the other hand ensure that the business accounting records are being maintained in accordance with the Generally Accepted Accounting Principles (GAAP)...

15th Edition

ISBN: 9781337902663

Author: WARREN, Carl S.

Publisher: Cengage Learning,

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Question

Chapter 7, Problem 15E

To determine

Identify and elaborate the changes to be made to PT’s procedures for ordering and paying towards services in order to prevent such occurrences in the future.

Expert Solution & Answer

Chapter 7 Solutions

Financial And Managerial Accounting

Ch. 7 - Prob. 1DQ Ch. 7 - Why should the employee who handles cash receipts...Ch. 7 - Prob. 3DQ Ch. 7 - Why should the responsibility for maintaining the...Ch. 7 - Prob. 5DQ Ch. 7 - Prob. 6DQ Ch. 7 - Prob. 7DQ Ch. 7 - Prob. 8DQ Ch. 7 - Prob. 9DQ Ch. 7 - Prob. 10DQ

Ch. 7 - Prob. 1BE Ch. 7 - Prob. 2BE Ch. 7 - Prob. 3BE Ch. 7 - Prob. 4BE Ch. 7 - Prob. 5BE Ch. 7 - Sarbanes-Oxley internal control report Using...Ch. 7 - Prob. 2E Ch. 7 - Prob. 3E Ch. 7 - Prob. 4E Ch. 7 - Prob. 5E Ch. 7 - Prob. 6E Ch. 7 - Prob. 7E Ch. 7 - Prob. 8E Ch. 7 - Prob. 9E Ch. 7 - Prob. 10E Ch. 7 - Prob. 11E Ch. 7 - Entry for cash sales; cash short The actual cash...Ch. 7 - Entry for cash sales; cash over The actual cash...Ch. 7 - Prob. 14E Ch. 7 - Prob. 15E Ch. 7 - Prob. 16E Ch. 7 - Prob. 17E Ch. 7 - Prob. 18E Ch. 7 - Prob. 19E Ch. 7 - Prob. 20E Ch. 7 - Prob. 21E Ch. 7 - Prob. 22E Ch. 7 - Prob. 23E Ch. 7 - Prob. 24E Ch. 7 - Prob. 1PA Ch. 7 - Prob. 2PA Ch. 7 - Prob. 3PA Ch. 7 - Prob. 4PA Ch. 7 - Prob. 5PA Ch. 7 - Prob. 1PB Ch. 7 - Prob. 2PB Ch. 7 - Prob. 3PB Ch. 7 - Prob. 4PB Ch. 7 - Prob. 5PB Ch. 7 - Analyze and compare Amazon.com to Netflix...Ch. 7 - Analyze and compare J. C. Penney and Macys J. C....Ch. 7 - Prob. 3MAD Ch. 7 - Prob. 4MAD Ch. 7 - Analyze and compare Nike, lululemon, and Under...Ch. 7 - Ethics in Action Tehra Dactyl is an accountant for...Ch. 7 - Bank error During the preparation of the bank...Ch. 7 - Prob. 4TIF Ch. 7 - Prob. 5TIF

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Similar questions

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.
What is the advantage of using technology in the internal control system? A. Passwords can be used to allow access by employees. B. Any cash received does not need to be reconciled because the computer tracks all transactions. C. Transactions are easily changed. D. Employees cannot steal because all cash transactions are recorded by the computer/cash register.

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