Business
AccountingAccounting Information SystemsINTERNAL CONTROL The accounting clerk for the Ram System Company receives source documents such as purchase orders, sales invoices, and vendor invoices, which she uses to prepare journal vouchers for general ledger entries. Each day the clerk posts the journal vouchers to the general ledger and the related subsidiary ledgers. Each month the clerk reconciles the subsidiary accounts to their control accounts in the general ledger to ensure that they balance. Required Discuss any control weaknesses and risks associated with this scenario.

INTERNAL CONTROL The accounting clerk for the Ram System Company receives source documents such as purchase orders, sales invoices, and vendor invoices, which she uses to prepare journal vouchers for general ledger entries. Each day the clerk posts the journal vouchers to the general ledger and the related subsidiary ledgers. Each month the clerk reconciles the subsidiary accounts to their control accounts in the general ledger to ensure that they balance. Required Discuss any control weaknesses and risks associated with this scenario.

BuyFind

Accounting Information Systems

10th Edition
Hall + 1 other
Publisher: Cengage Learning,
ISBN: 9781337619202
BuyFind

Accounting Information Systems

10th Edition
Hall + 1 other
Publisher: Cengage Learning,
ISBN: 9781337619202

Solutions

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Chapter 8, Problem 4P
Textbook Problem

INTERNAL CONTROL

The accounting clerk for the Ram System Company receives source documents such as purchase orders, sales invoices, and vendor invoices, which she uses to prepare journal vouchers for general ledger entries. Each day the clerk posts the journal vouchers to the general ledger and the related subsidiary ledgers. Each month the clerk reconciles the subsidiary accounts to their control accounts in the general ledger to ensure that they balance.

Required

Discuss any control weaknesses and risks associated with this scenario.

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Chapter 8 Solutions

Accounting Information Systems
Ch. 8 - What information is contained in a journal...Ch. 8 - How are journal vouchers used as a control...Ch. 8 - What information is contained in the general...Ch. 8 - What is the purpose of the general ledger history...Ch. 8 - What is the purpose of a responsibility center...Ch. 8 - List the primary users of the FRS, and discuss...Ch. 8 - Name, in order, the 11 steps of the financial...Ch. 8 - What assumption is made regarding the external...Ch. 8 - When are adjusting entries made, and what is their...Ch. 8 - What tasks should the general ledger clerk not be...
Ch. 8 - What are the two operational reports produced by...Ch. 8 - Explain which of the four potential risks to the...Ch. 8 - What does XML stand for?Ch. 8 - What does XBRL stand for?Ch. 8 - What is an XBRL taxonomy?Ch. 8 - What is an XBRL instance document?Ch. 8 - What is an XBRL tag?Ch. 8 - Explain how the formalization of tasks promotes...Ch. 8 - Explain why it is important that both...Ch. 8 - Distinguish between narrow and wide span of...Ch. 8 - How does management by exception help to alleviate...Ch. 8 - Identify instances for which feedback becomes...Ch. 8 - Contrast the four decision typesstrategic...Ch. 8 - What are the three elements that distinguish...Ch. 8 - What management levels are more likely to deal...Ch. 8 - What are the two objectives that enable reports to...Ch. 8 - List and define the seven report attributes.Ch. 8 - What is responsibility accounting?Ch. 8 - What are the two phases of responsibility...Ch. 8 - What are the three most common forms of...Ch. 8 - What is goal congruence?Ch. 8 - What is data mining?Ch. 8 - What is a data warehouse?Ch. 8 - What is information overload?Ch. 8 - Explain some reporting techniques that may cause...Ch. 8 - Explain how exception reporting would be...Ch. 8 - What types of variances are found on cost center...Ch. 8 - Distinguish between a profit center and an...Ch. 8 - Define small data analytics.Ch. 8 - Define big data analytics.Ch. 8 - What is a SSAE 16 report?Ch. 8 - Discuss any separation of duties necessary to...Ch. 8 - Discuss the various sources of data for the FRS...Ch. 8 - Explain how erroneous journal vouchers may lead to...Ch. 8 - Ultimately, is the purpose of an audit trail to...Ch. 8 - Describe the role of the journal voucher in both...Ch. 8 - Controls are only as good as the predetermined...Ch. 8 - Discuss three audit implications of XBRL.Ch. 8 - Although HTML and XML documents look very similar...Ch. 8 - If management control and strategic planning...Ch. 8 - In terms of decision-making capabilities, which...Ch. 8 - Scheduled reports may contain some information...Ch. 8 - Sometimes a trade-off must be made between...Ch. 8 - Figure 8-18 illustrates both upward and downward...Ch. 8 - Distinguish between the verification model and the...Ch. 8 - Explain how a data warehouse database is...Ch. 8 - Why are cost centers considered to be more...Ch. 8 - Explain how a production quota used to evaluate a...Ch. 8 - Explain and give an example as to how a manager...Ch. 8 - Comment on the following statement: More...Ch. 8 - How are prescriptive and predictive analytics...Ch. 8 - Discuss two internal threats to big data security.Ch. 8 - Discuss the three Vs of big data analytics.Ch. 8 - Which of the following statements best describes a...Ch. 8 - Which of the following statements is most true? a....Ch. 8 - Which of the following is NOT an output report of...Ch. 8 - Which of the following statements is most true? a....Ch. 8 - An XBRL instance document is a. the document...Ch. 8 - Which of the following is not a data analytics...Ch. 8 - Hercules Inc. uses a performance reporting system...Ch. 8 - An XBRL taxonomy is a. a classification scheme...Ch. 8 - Which of the following statements is true? a....Ch. 8 - Which of the following budgeting processes is...Ch. 8 - Which of the following would normally be...Ch. 8 - At what level of management is the long-range...Ch. 8 - Which is the fundamental purpose of responsibility...Ch. 8 - Which file provides historical financial data for...Ch. 8 - An investment center is described best by which of...Ch. 8 - GENERAL LEDGER SYSTEM OVERVIEW Draw a diagram...Ch. 8 - FINANCIAL REPORTING PROCESS The following contains...Ch. 8 - XBRL John Ozment, director of special projects and...Ch. 8 - INTERNAL CONTROL The accounting clerk for the Ram...Ch. 8 - DATABASE GL SYSTEMBATCH Crystal Corporation...Ch. 8 - DATABASE GL SYSTEMREAL TIME The top-management...Ch. 8 - INTERNAL CONTROL Expand Figure 8-5 in the text to...Ch. 8 - ORGANIZATIONAL CHART Prepare an organizational...Ch. 8 - DECISION LEVEL Classify the following decisions as...Ch. 8 - REPORT CATEGORIZATION Classify the following...Ch. 8 - ORGANIZATION STRUCTURE AND SPAN OF CONTROL Refer...Ch. 8 - ORGANIZATION STRUCTURE AND SPAN OF CONTROL Refer...Ch. 8 - CMA-ADAPTED ORGANIZATIONAL STRUCTURE While...Ch. 8 - CMA-ADAPTED PERFORMANCE MEASURES The Star Paper...Ch. 8 - PROBLEM IDENTIFICATION Classify each of the...Ch. 8 - MANAGEMENT BY EXCEPTION A variety of quantitative...Ch. 8 - DATA ANALYTICSCLOUD SERVICE PROVIDER Harry Jones,...

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