At Carlson Services, the cashier collects checks and cash from customers, and the junior accountant records the transactions in the journal. The controller approves the journal entries and bank reconciliations. The treasurer signs checks and approves contracts. Which internal control procedure is exemplified in the above situation? OA. separation of duties OB. assignment of responsibilities OC. documents O D. competent, reliable, and ethical personnel (
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- Internal control is said to be the backbone of all businesses. Which of the following is the best description of internal controls? A. Internal controls ensure that the financial statements published are correct. B. The only role of internal controls is to protect customer data. C. Internal controls and company policies are important to protect and safeguard assets and to protect all company data and are designed to protect the company from fraud. D. Internal controls are designed to keep employees from committing fraud against the company.Required:Match each of the control procedures listed below with the most closely related control procedurestype. Your answer should pair each of the numbers 1 through 10 with the appropriate letter.Control Procedure Typesa. Adequate documents and recordsb. Checks on recorded amountsc. Clearly defined authority and responsibilityd. Safeguards over assets and recordse. Segregation of dutiesControl Procedures1. Only the cashier assigned to the cash register is allowed to perform transactions.2. Division managers are evaluated annually on the basis of their division’s profitability.3. Invoices received from outside suppliers are filed with purchase orders.4. Employees with access to the accounting records are not permitted to open the mailbecause it contains many payments by check from customers.5. The extent of access to the many segments of the company’s computer system is tightly controlledby individual identification cards and passwords that change at regular intervals.6. Each shipment…The objectives of internal control are to a. prevent fraud and promote the social interest of the company Ob. provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with c. control the internal organization of the Accounting Department personnel and equipment d. provide control over "internal-use only" reports and employee internal conduct
- At Radiant, Inc., the sales department is also responsible for recording cash transactions as it does not have a separate accounting department. Which internal control procedure needs strengthening? A. separation of duties B. competent, reliable, and ethical personnel C. assignment of responsibilities D. documentsSelect the appropriate control activities for each of the following definitions. Definitions Control Activities a. The company should maintain security over assets and accounting records. Management should periodically determine whether the amounts of physical b. assets of the company match the accounting records. The company should provide employees with appropriate guidance to ensure C. they have the knowledge necessary to carry out their job duties. The actual performance of individuals or processes should be checked against d. their expected performance. Authorizing transactions, recording transactions, and maintaining control of the е. related assets should be separated among employees. To prevent improper use of the company's resources, only certain employees are allowed to carry out certain business activities.Segregation of Duties (SOD) is a basic building block of sustainable risk management and internal controls for a business. Which of the following statements is not a segregation of duties violation?A. The duties of Internal IT Developer of company is to write application programs and then perform required program maintenance when a problem occurs.B. The payroll administrator is distributing payroll checks to employees and recording cash receipts in the journal under supervision.C. The accounting clerk who recording cash receipts in the journal in the general ledger performs bank reconciliation to compare if there are any differences between cash transactions.D. The inventory warehouse clerk task is to maintain the inventory records with custody of physical assets inventory to manage asset identification, location and condition Explain why you choose your answer, and not the other (in max 200 words)
- Internal controls are crucial to ensuring that financial transactions are authorized and company records are maintained properly. Please explain some of the internal control procedures that accounting departments utilize to achieve the aforementioned goals. How do these internal controls help accounting departments achieve their objectives?Requiring that an employee with no access to cash do the accounting is an example ofwhich characteristic of internal control?a. Separation of dutiesb. Assignment of responsibilityc. Competent and reliable personneld. Monitoring of controlsExplain why each of the following combinations of tasks should or should no be separated to achieve adequate internal control. a. Approval of bad debt write-offs and the reconciliation of the AR subsidiary ledger and the GL Control Account. b. Distribution of payroll checks to employees and approval of employee time cards. c. Posting of amounts from both the cash receipts and the cash disbursement journals to the general ledger. d. Writing checks to vendors and posting to the cash account. e. Recording cash receipts in the journal and preparing the bank reconciliation. Please provide a clear explanation. *No plagiarism please*
- Which of the following is an example of detective controls? a. The company should establish formal guidelines to handle cash receipts and make purchases. b. Important documents should be kept in a safe place, and electronic files should be backed up regularly. c. Employees should be made aware of the company’s internal control policies. d. Management periodically determines whether the amount of physical assets agree with the accounting records.An accounting information system comprises five generic parts. Which of the following gives an example of an internal control associated with the sales/collection process? Depositing cash in the bank daily Adequately supervising employees who handle inventory Both depositing cash in the bank daily and adequately supervising employees who handle inventory Neither depositing cash in the bank daily nor adequately supervising employees who handle inventoryQuestion 5 Explain why each of the following combinations of tasks should or should not be separated to achieve adequate internal control. Approval of bad debt write-offs and the reconciliation of the accounts receivablesubsidiary ledger and the general ledger control account. Distribution of payroll checks to employees and approval of employee time cards. c. Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger. Writing checks to vendors and posting to the cash account. Recording cash receipts in the journal and preparing the bank reconciliation