Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN: 9781133935940
Author: Ulric J. Gelinas
Publisher: CENGAGE L
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Question
Chapter 9, Problem 1P
a)
Summary Introduction
To prepare: A control matrix that includes a control plan, which helps to accomplish control goals.
Introduction:
b)
Summary Introduction
To annotate: The given system flowchart.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
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Ma1.
Control activities are the policies and procedures that help ensure that management directives are carried out and which are designed to prevent and detect fraud and error occurring. An example of a control activity is the maintenance of a control account.
Explain any five internal control activities and describe measures of internal control you would recommend to ensure that cash receipts and resources are properly accounted for and managed.
Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are:
CodeInternal Control Principle
AEstablishment of responsibility
BSegregation of duties
CDocumentation procedures
DPhysical controls
EIndependent internal verification
FHuman resource controls
Instructions: Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be used once, more than once, or not at all.
____ 1.The duties of receiving and recording cash should be assigned to different individuals.
____ 2.Daily cash counts should be made by cashier department supervisors.
____ 3.Employees should be required to take vacations.
____ 4.Cash register tapes should be used for over-the-counter receipts.
____ 5.Each check should be compared with approved invoices before…
Each situation below describes an internal control weakness in the cash payments process. Identifywhich of the five internal control principles is violated, explain the weakness, and then suggest achange that would improve internal control.a. The warehouse clerk is responsible for ordering inventory when levels become low and advising the accounting department to issue a payment to the supplier when ordered goods arereceived.b. For each purchase, the accountant compares the purchase order (prepared by the purchasing manager) to the receiving report (prepared by warehouse employees) and then attachesthese documents to the corresponding supplier invoice and files them by supplier name. Theaccountant then prepares a check, which the owner merrily signs and sends to the mail clerkfor mailing.c. The check-signing machine is stored with a supply of blank checks in the lunch room closet.d. Purchase orders can be approved by the purchasing manager, accountant, or warehouse supervisor,…
Chapter 9 Solutions
Pkg Acc Infor Systems MS VISIO CD
Ch. 9 - Prob. 2RQCh. 9 - How could the control matrix be used to recommend...Ch. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Name and explain four different types of batch...Ch. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 1DQ
Ch. 9 - Explain why input controls are so important....Ch. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 1SPCh. 9 - Prob. 2SPCh. 9 - Figure 9.10 lists 10 control plans from this...Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6P
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Similar questions
- Which of the following is a good internal control for cash payments? A.Payments to suppliers should be made as quickly as possible B.An experienced accountant should have total responsibility for all cash payment functions. C.Payments should be authorised before they are made D.Supporting documentation should be destroyed immediately after payment to avoid incorrectly twice.arrow_forwardWhich of the following is an effective internal control for cash payments? A.Payments should be authorised before they are made B.Payments to suppliers should be made as quickly as possible C.An experienced accountant should have total responsibility for all cash payment functions D.Supporting documentation should be destroyed immediately afterpayment to avoid incorrectly paying twicearrow_forwardDATA FLOW DIAGRAM-CASH DISBURSEMENTSPrepare a data flow diagram that reflects the activities presented in theprocess outlined in this Problem. SYSTEM FLOWCHART APUsing the format presented in Figure 2-4 in the text, develop a similarflowchart for the process of paying vendor accounts payable.The Process: Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice anda cash disbursement voucher are sent to the cash disbursementdepartment, where a check is prepared and sent to the vendor. A copy ofthe check, the invoice, and the voucher are returned to theAP department and filed.arrow_forward
- For the company TJ Maxx observe its internal controls over cash receipts and cash payments. Identify and discuss the similarities and differences in the business's observable cash internal controls.arrow_forwardList at least 5 control measures per principle of control activities which an organization may implement to establish internal control procedures. What internal control features exist in a petty cash fund?arrow_forwardApplying internal control over cash receipts by mail Review the internal controls over cash receipts by mail presented in the chapter. Exactly what is accomplished by the final step in the process, performed by the controller?arrow_forward
- At Emerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal and ledger. Which of the following is the best explanation of this type of internal control principle over cash receipts? Physical controls. Documentation procedures. Mechanical controls. Segregation of duties.arrow_forwarda. Identify the internal control weaknesses in the cash receipts process b. For each weakness, describe the associated risks c. For each weakness, provide a possible control activityarrow_forwardKeeping cash locked away is an example of which control activity? a. Authorization b. Performance reviews • c. Physical control d. Segregation of dutiesarrow_forward
- Which of the following is correct? a. The Controller is responsible in overseeing financial accounting, and cost accounting functions of the firm. b. Both the Controller and Treasurer reports directly to the company’s Chief Audit Officer. c. The firm’s Controller manages the firm’s cash and manages key risks. d. Capital budgeting process is under the controller’s responsibility since this process involves potential cash disbursementarrow_forwardExplain the relationships among the initial assessed controlrisk, tests of controls and substantive tests of transactions for cash disbursements, andthe tests of details of cash balances. Give one example in which the conclusions reachedabout internal controls in cash disbursements will affect the tests of cash balancesarrow_forwardAs part of a strong internal control system, which of the following accounting duties needsto be separated from cash handling?a. Record keepingb. Filingc. Transaction approvald. Both a and c need to be separated from cash handling.arrow_forward
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