The internal control procedures in Valentine Company result in the following provisions Identify the principles of internal control that are being followed in each case. Employees who have physical custody of assets do not have access to the accounting records. a. Physical Controls Segregation of Duties Independent Internal Verification Establishment of Responsibility Each month, the assets on hand are compared to the accounting records by an b. internal auditor. Human Resource Controls Documentation Procedures A prenumbered shipping document is prepared for each shipment of goods to C. customers.

The internal control procedures in Valentine Company result in the following provisions Identify the principles of internal control that are being followed in each case. Employees who have physical custody of assets do not have access to the accounting records. a. Physical Controls Segregation of Duties Independent Internal Verification Establishment of Responsibility Each month, the assets on hand are compared to the accounting records by an b. internal auditor. Human Resource Controls Documentation Procedures A prenumbered shipping document is prepared for each shipment of goods to C. customers.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter6: The Expenditure Cycle Part Ii: Payroll Processing And Fixed Asset Procedures

Section: Chapter Questions

Problem 5P

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Select 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.
The internal control procedures in Dayton Company result in the following provisions.Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. Select the principle of internal control Human resource controlsSegregation of dutiesEstablishment of responsibilityPhysical controlsIndependent internal verificationDocumentation procedures (b) Each month, the assets on hand are compared to the accounting records by an internal auditor. Select the principle of internal control Establishment of responsibilityHuman resource controlsPhysical controlsIndependent internal verificationDocumentation proceduresSegregation of duties (c) A prenumbered shipping document is prepared for each shipment of goods to customers. Select the principle of…
The internal control procedures in Dayton Company result in the following provisions.Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. Select the principle of internal control (b) Each month, the assets on hand are compared to the accounting records by an internal auditor. Select the principle of internal control (c) A prenumbered shipping document is prepared for each shipment of goods to customers.
Allowing only certain employees to order goods and services for the company is an example of what internal control procedure? a.Proper authorization b.Independent verification c.Segregation of duties d.Safeguarding of assets and records
The internal control procedures in Forestry Company result in the following provisions. Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. (b) A prenumbered shipping document is prepared for each shipment of goods to customers. (c) Each month, the assets on hand are compared to the accounting records by an internal auditor .
Which internal control methodology provided below would be the best solution to resolve the following problem? The accountant had trouble reconciling how many cheques were used and the cheques that were left over. a. 1-Establishment of responsibility b. C. 3-Documentation procedures d. 2-Segregation of duties e. 4- Physical and IT controls 5-Independent checks of performance
Which of the following is an attribute of the internal control procedure—assignment of responsibilities? A. The external auditors will monitor internal controls. B. The company should separate the custody of assets from accounting. C. Each position has clearly assigned responsibilities. D. To validate their accounting records, a company should have an audit by an external accountant.
Internal controls do each of the following except: A. Evaluate performance of employees B. Guarantee the accuracy if account records C. Protect assets D. Increase the likelihood that any errors will be caught
The purpose of separating the duties of hiring personnel and distributing payroll checks is toseparate thea. Authorization of transactions from the custody of related assets.b. Operational responsibility from the record-keeping responsibility.c. Human resources function from the controllership function.d. Administrative controls from the internal accounting controls.
Which of the following is not generally an internal control activity? a.Physically counting inventory in a perpetual inventory system b.Establishing clear lines of authority to carry out specific tasks c.Reducing the cost of hiring seasonal employees d.Limiting access to computerized accounting records
One aspect of internal control requires companies to maintain adequate documentation and records. Which of the following statements is not correct with respect to an entity's maintenance of documents and records? A. Documents should be pre-numbered only if the client has no other means to maintain records of which documents have been used. B. Documents should be pre-numbered consecutively to facilitate control over missing documents. C. Documents should be sufficiently simple to ensure that they are clearly understood. D. Documents should be prepared at the time a transaction occurs or as soon thereafter as possible.
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