1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yuradex [85]
3 years ago
13

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.

You might be interested in
Are leadership and management the same thing?
Fiesta28 [93]
No I think that in order to be a management you have to be a leader. If your a manager then your leading your employees if your not a leader you can’t properly do the manager job.
8 0
3 years ago
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital wa
valina [46]

Answer:

Net   Cash flow   in year 4   $46,140<u> </u>

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year    4                                               cash flow     ;

                                                                     $

Operating cash flow                               $58,500

Working capital recouped                     4,950

Scrap value                                            6,090    

Tax payable (40%*58500)                      <u>(23400 )</u>

  Net   Cash flow                            <u>      46,140 </u>

3 0
3 years ago
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. An
weqwewe [10]

Answer:

A. supply curve shifts to the left

Explanation:

An increase in the prices of inputs from $4 to $6 shows economic problems that include a reduction in capital stock, labor, and an increased unemployment rate. This can also give room for inflation.

This increase shows that due to shortage in labor supply, it now costs more to produce a product.

Due to all the above mentioned reasons, the supply curve of both long run and short run supply curves shifts left.

Cheers.

7 0
3 years ago
Explain two barriers to entry for a new business
Marianna [84]

Answer: Government regulation, Economies of scale

Explanation:

Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,

a). <em>Government regulation</em>- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.

b). <em>Economies of scale</em>- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.


6 0
4 years ago
Read 2 more answers
the financial system consists of financial _____, such as commercial banks, and financial markets, such as the stock market.
vazorg [7]

The financial system consists of financial intermediaries, such as commercial banks, and financial markets, such as the stock market. This is further explained below.

<h3>What are financial intermediaries?</h3>

Generally, financial intermediaries are simply defined as Banks, building societies, and unit-trust companies are all examples of financial intermediaries.

In conclusion, Institutions like commercial banks and marketplaces for trading financial instruments like stocks and bonds make up the financial system.

Read more about financial intermediaries

brainly.com/question/2494552

#SPJ12

5 0
2 years ago
Other questions:
  • Managerial jobs with strategy-making responsibility:
    6·1 answer
  • Advertisements for CL brake products, True spark plugs, AM chassis parts, and Stone wheels featured in Tire Review, a journal fo
    9·1 answer
  • Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for
    10·1 answer
  • The short run aggregate supply curve was constructed assuming that as the price of outputs increases, the price of inputs stays
    10·1 answer
  • On October 1, Kelly Company received $25,500 for six months of rent, in advance. Kelly credited Rent Revenue, which is an altern
    10·1 answer
  • Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains t
    14·1 answer
  • In recent years, industries with high four- and eight-firm concentration ratios include cars, cereal breakfast foods, and farm m
    15·1 answer
  • Paula earns $40,000 per year and rides her bicycle to work. There is a 1% chance that she will break her leg in the next year an
    5·1 answer
  • ____ allow a company to monitor whether salespeople are engaging in tasks such as calling on new accounts, collecting past-due a
    7·1 answer
  • Punishments help comfort your behavior right
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!