Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

II-23 (OBJECTIVES II-3, II-4) The following are internal controls related to various cycles. 1. Sales invoices are matched with shipping documents by the computer system

image text in transcribed II-23 (OBJECTIVES II-3, II-4) The following are internal controls related to various cycles. 1. Sales invoices are matched with shipping documents by the computer system and an exception report is generated. 2. Receiving reports are prenumbered and accounted for on a daily basis. 3. Sales invoices are independently verified before being sent to customers. 4. Payments by check are received in the mail by the receptionist, who lists the checks and restrictively endorses them. 5. Labor hours for payroll are reviewed for reasonableness by the computer system. 6. Checks are signed by the company president, who compares the checks with the underlying supporting documents. 7. Unmatched shipping documents are accounted for on a daily basis. 8. The computer system verifies that all payroll payments have a valid employee identification number assigned by the human resources department at the time of hiring. 9. The accounts receivable master file is reconciled to the general ledger on a monthly basis. a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as proper authorization and adequate documents and records). b. For each internal control, identify the transaction-related management assertion(s) to which it applies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Eoc Only Davis Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd Edition

111883464X, 978-1118834640

More Books

Students also viewed these Accounting questions

Question

2. Compute the conditional distribution of given that and , where .

Answered: 1 week ago