Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Internal Controls In his working paper, the first-year audit trainee documented the following internal controls regarding the revenue cycle implemented by SunSea: C1: SunSea's directors

image text in transcribedimage text in transcribed Internal Controls In his working paper, the first-year audit trainee documented the following internal controls regarding the revenue cycle implemented by SunSea: C1: SunSea's directors promote a culture of honesty and integrity and do not tolerate any dishonesty or transgressions on the part of employees. C2: SunSea issues a sequentially numbered ticket to a customer purchasing an open bus day trip and a prenumbered receipt is issued for the payment received. These ticket and receipt numbers are regularly reviewed, and outstanding numbers not recorded in the general ledger are followed up on. C3: The cash received is kept in a cash register and banked daily. 2. With reference to the information under internal controls: 2.1 indicate the component of the system of internal control that is applicable to control aspects C1 and C2 implemented by SunSea 2.2 For the control aspects C2 and C3 implemented by SunSea: 2.2.1 describe the objective of the control implemented 2.2.2 indicate whether the control constitutes a preventive, detective, or corrective control (2) (3)

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_2

Step: 3

blur-text-image_3

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

Auditing Theory And Practice

Authors: C. William Thomas

1st Edition

0534013880, 978-0534013882

More Books

Students also viewed these Accounting questions