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3 years ago

Identify the internal control weakness in the following situations. State how the person can hurt the company.

Business

1 answer:

Degger [83]3 years ago

4 0

Answer:

Identification of the Internal Control Weaknesses:

A. There is no segregation of duties and there is lack of access control. Jerry Miller as a security guard is not expected to have a master key to the cash box. With this he can pilfer the cash. If he prepares the report that shows the number of cars that parked on the lot, he is not supposed to also prepare the day's cash receipts. Otherwise, he can state any number of cars as parked that he likes, and which corresponds to the cash he might leave in the Cash box since he also has a master key.

B. There is no segregation of duties and there is lack of supervision, proper reconciliations, and assets audit. Sharon Fisher handles purchase transactions from the beginning to the close all alone with a third party. This exposes the company to procurement frauds and collusion with suppliers. She can purchase assets for the company at prices that would enrich her personally.

C. Forming an audit opinion on the basis of ratio analysis of last year's comparative financial statements exposes the company to audit risks. While ratio analysis is part of the basis for forming audit opinions, it is surely not the first audit procedure to obtain audit evidence to support his audit opinion on the financial statements. An auditor is expected to obtain sufficient audit evidence and perform audit substantive tests of financial statement assertions. He or she is also expected to review the internal control system to ensure that it is operating effectively after establishing its existence and reviewing changes in internal controls.

Explanation:

Internal Controls are controls established by management in order to help it achieve business goals. There are many internal controls, including Separation of Duties, Access Controls , Authorization and Approvals, Asset Audits, Reconciliations, and Data Backups. The purposes of internal controls are to establish the reliability of financial reporting, ensure timely feedback on the achievement of operational or strategic goals, and achieve compliance with financial management laws, and accounting regulations.

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Which of the following is a disadvantage of a decentralized organizational structure? A. Increasing the size of the corporate bu

galben [10]

Answer:

Putting the organization at risk if higher-level management is unaware of their actions

Explanation:

Decentralization is a process of top management transferring decision-making powers, particularly in relation to planning and control, by means of delegated authority away from the top, to lower levels of management.

Once this is done, of the disadvantages is that: top management might not always be aware of issues when they occur and how and when they nmay have been resolved. This could put the organisation at risk because certain issues may have been better resolved at the top by virtue of the experience of senior management. In essence, Top management might begin to loose control.

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3 years ago

What are the determinants of demand and provide the definition and example of each.

yKpoI14uk [10]

Explanation:

Examples of determinants of demand are:

- The price of the good or service. - The nominal price of a good is its value in terms of money

- The income of buyers. - available to purchase a good

- The prices of related goods or services. - one of the other factors affecting demand

- The tastes or preferences of consumers. - the subjective (individual) tastes, as measured by utility, of various bundles of goods.

- Consumer expectations. -the feelings, needs, and ideas that customers have towards certain products or services

If you have any questions feel free to ask in the comments. - Mark

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3 years ago

Using XXs for amounts, give the journal entry for each of the transactions, assuming perpetual inventory. (If no entry is requir

lawyer [7]

Answer:

Journal entries

Explanation:

1. Cash Dr XX

To Sales revenue XX

(Being the cash sales is recorded)

Since the cash is received so we debited the cash as it also increases the assets and the sales revenue would be credited as it an income for the company

2. Cost of goods sold XX

To Merchandise inventory XX

(Being the cost of goods sold is recorded)

While calculating the cost of inventory we debited the cost of goods sold and credited the merchandise inventory

1. Account receivable Dr XX

To Sales revenue XX

(Being the cash sales is recorded)

Since the sales is made on account so we debited the account receivable as it also increases the assets and the sales revenue would be credited as it an income for the company

2. Cost of goods sold XX

To Merchandise inventory XX

(Being the cost of goods sold is recorded)

While calculating the cost of inventory we debited the cost of goods sold and credited the merchandise inventory

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3 years ago

When a price floor is placed on the price of movie tickets, the consumer surplus relative to the free market equilibrium will mo

Lostsunrise [7]

It will definitely decrease, as consumers will have to pay more and a deadweight loss will be present. Search up 'price floors and deadweight loss'.

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3 years ago

Read 2 more answers

There is a need to develop theories about what kind of fraud has occurred.

Mashcka [7]

A fraud in general terms refers to a wrongful or criminal deception intended to result in a financial or personal gain. This kind of acts should be more observe especially to those people that are done by the wrongful act and theories and some investigation should be done in order to counter the next incident that might happen with the same kind of fraud.

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3 years ago