Chapter 7 Internal Control and Cash 379 Take It Further TIF 7-1 Ethics in Action Tehra Dactyl is an accountant for Skeds, Inc, a footwear and apparel company. The company's revenue and net income have increased by more than 100% over the past three years. During the same period, Tehra and her colleagues in the accounting department have not received a raise or salary increase. Frustrated by not receiving a raise while the company has thrived Tehra has begun relationship with her supervisor, and he simply"signs off on Tehra's expense reimbursements. Tehra suspects that he knows that she is submitting personal expenses for reimbursement and is "looking the other way" because Tehra has not received a raise in the past three years. submitting expense reimbursements for personal purchases. Tehra has a good Are Tehra and her supervisor acting in an ethical manner? Why? TIF 7-2 Team Activity teams, select a public company that interests you. Obtain the company's most recent annual s financial statements and accom- EAL WO port on Form 10-K. The Form 10-K is a company's annually required filing with t and Exchange Form 10-K can be obtained either (A) from the investor relations panying of the database service found at www company's Web site or (B) by using the company search feature of the SECs EDGAR 1. Based on the information in the company's most recent annual report, answer the following of total current assets is cash during the most recent two years .sec gov qu A. How much cash does the company have at the end of the most recent year? B. what percentage presented? Has this percentage increased, decreased, or remained the same during this 2. Review Management's Annual Report on Internal Control Over Financial Reporting. Based A. Who has responsibility for establishing and maintaining adequate internal controls over period? on this information, answer the following questions: a company's financial reporting? B. How is "internal control over financial reporting" defined in this report? C. What level of assurance is provided that fraud will be detected? TIF 7-3 Communication Wholesome and Happy Foods is a farm-to-family grocery store located in the Pacific Northwest. The company recently installed four self-checkout lanes that allow customers to scan their own groceries and pay for their purchases using an automated checkout kiosk. The kiosks are monitored by a single attendant. In recent weeks, management has become concerned that some sting features and capabilities for the would serve as control procedures, ensuring that all items brought through the customers are not scanning all of the items that they bring through the self-checkout lanes. Write a brief memo to your instructor suggesting features and ca kiosks self-checkout lanes are properly scanned and purchased. that
