Financial Accounting: An Integrated Statements Approach, 2nd Edition

How would you address these issues? You could, for example, develop a schedule at the beginning of each day and then inspect the ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 309 Internal control can safeguard assets by preventing theft, fraud, misus ...

business’s control environment is represented by the size of the umbrella. Risk assess- ment, control procedures, and monitoring ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 311 Risk Assessment All organizations face risks. Examples of risk include ...

fraud have been discovered after a long-term employee, who never took vacations, missed work because of an illness or other unav ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 313 allow employees to borrow or steal cash and hide the theft in the recor ...

needed by management to guide operations and ensure compliance with reporting, legal, and regulatory requirements. Management ca ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 315 CASH CONTROLS OVER RECEIPTS AND PAYMENTS Cashincludes coins, currency ( ...

After a cash register clerk’s cash has been counted and recorded on a memor- andum form, the cash is then placed in a store safe ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 317 advice, with their payment. The employee who opens the incoming mail sh ...

Most companies encourage automatic electronic transfers by customers for several reasons. First, electronic transfers are less c ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 319 BANK ACCOUNTS Most of you are familiar with bank accounts. You probably ...

320 Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 32.26 535.09 ACH 932.00 07/29 3,404.40 21.10 126.20 705.21 07/30 3,962. ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 321 A bank makes credit entries (issues credit memoranda) for deposits made ...

BANK RECONCILIATION For effective control, the reasons for the difference between the cash balance on the bank statement and the ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 323 deposits.Add deposits not recorded by the bank to the balance according ...

No entries are necessary on the company’s records as a result of the information included in the bank section of the reconciliat ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 325 For effective control, the bank reconciliation should be prepared by an ...

Replenishing the petty cash fund restores it to its original amount of $500. You should note that there is no entry in Petty Cas ...

Chapter 7 Sarbanes-Oxley, Internal Control, and Cash 327 Banks may require companies to maintain minimum cash balances in their ...