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.
Answer: Option C
Explanation: In simple words, product focused process refers to the processes that focuses on producing the batch of similar products. These processes are usually used to manufacture products like paper rolls and light bulbs.
Under this process large units are produced of a similar product. Such processes require high fixed cost and low variable cost.
From the above we can conclude that the correct option is C.
Answer:
b. $360,000.
Explanation:
Data provided in the question
Purchase value of the patent = $720,000
At the time of purchase, the patent life is 15 years
And, the useful life of the patent is 10 years
So, the amortization expense recorded value is
= $720,000 ÷ 10 years × 5 years
= $360,000
The five years is counted from the year 2006 to the year 2011
PROFIT PERHAPS OR INCREASE IN SALES FOR THERE IS NO RIVALS ANYMORE AND HAVE TAKEN THEM OUT
Answer: Upward communication
Explanation:
Upward communication can be defined as the communication process that occurs from the lower levels to higher levels. In other words, communication flows upwards. Communication is a fundamental aspect of every workplace since it allows us to express everything that is happening at work. When communication occurs effectively, work can be done better and thus give better results. When there is communication, it is also easier to identify possible problems that may arise.
Staying in constant communication helps to make the work environment more comfortable for both, it is important to be able to express everything related to work and receive feedback that only has the intention that everything can go better.
