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Chapter_08.pdf

Chapter_08.pdf

上传者: bluebreeze 2011-09-11 评分 0 0 0 0 0 0 暂无简介 简介 举报

简介:本文档为《Chapter_08pdf》,可适用于财会税务领域,主题内容包含ChapterCashandInternalControlsQUICKSTUDIESQuickStudy(minutes)Themainobject符等。

ChapterCashandInternalControlsQUICKSTUDIESQuickStudy(minutes)ThemainobjectiveofinternalcontrolproceduresistosafeguardtheassetsofthebusinessThisobjectiveisbestaccomplishedbydesigninganoperationalsystemwithmanagerialpoliciesthatprotecttheassetsfromwaste,fraudandtheftThesystemshouldbedesignedincompliancewiththesevenbroadprinciplesofinternalcontrolthataredescribedinthechapterSeparationofrecordkeepingforassetsfromthecustodyoverassetsisintendedtoreducetheftandfraudIfthisfundamentalprincipleisfollowed,therehastobecollusionbetweentwoormoreemployeesforassetstobestolenandthethefttobeconcealedintherecordsTheresponsibilityforatransactionshouldbedividedbetweentwoormoreindividualsordepartmentstoensurethattheworkofoneactsasacheckontheotherAbsentthis,someonecouldcreatefictitiousinvoicesandpaythemoneytoherselforhimselfMcGrawHillCompanies,SolutionsManual,ChapterQuickStudy(minutes)Thecashcategoryincludescurrencyandcoinsalongwiththeamountsondepositinbankaccounts,checkingaccounts,andsavingsaccountsCashalsoincludesitemsthatareacceptablefordepositintheseaccountsincludingcustomerchecks,cashierchecks,certifiedchecks,andmoneyordersThecashequivalentscategoryincludesshortterm,highlyliquidinvestmentassetsmeetingtwocriteria:()readilyconvertibletoaknowncashamountand()sufficientlyclosetotheirduedatessothattheirmarketvalueisnotsensitivetointerestratechangesUsuallyonlyinvestmentspurchasedwithinmonthsoftheirduedatesatisfythesecriteriaExamplesofcashequivalentsincludeUSTreasurybillsandmoneymarketfundsLiquidityreferstoacompany’sabilitytopayforitsneartermobligationsQuickStudy(minutes)AliquidassetreferstoanassetthatcanbereadilyconvertedintoanothertypeofassetorbeusedtosatisfyanobligationAcashequivalentisahighlyliquidshortterminvestmentthatcanbereadilyconvertedtoaknownamountofcashandissufficientlyclosetoitsmaturitydatesothatitsmarketvalueisrelativelyinsensitivetointerestratechangesCompaniesusuallyinvestidlecashincashequivalentstoearnahigherreturnontheseassetsEffectivecashmanagementappliesthefollowingfiveprinciples:aEncouragescollectionofreceivablesbDelayspaymentofliabilitiescKeepsonlynecessarylevelsofassetsdPlansexpenditureseInvestsanyexcesscashMcGrawHillCompanies,FundamentalAccountingPrinciples,thEditionQuickStudy(minutes)Thethreebasicguidelinesforsafeguardingcashare:(a)Separatethedutiesofthosewhohandle(havecustodyof)cashfromthosethatkeepcashrecords(b)Requirethatallcashreceiptsbedepositeddaily(c)Requirethatallcashdisbursementsbemadebycheck(a)Vouchersystemofcontrol,and(b)PettycashsystemofcontrolQuickStudy(minutes)(a)PettyCashCashToestablishthepettycashfund(b)EntertainmentExpense($$)PostageExpensePrintingExpenseCashToreimbursethepettycashfundThePettyCashaccountiscreditedwheneither()thedollaramountofthefundisbeingreduced,or()thefundisbeingeliminatedQuickStudy(minutes)()()a(i)Bank(ii)AdditionNoadjustmentrequiredb(i)Book(ii)AdditionAdjustingentryrequiredc(i)Book(ii)SubtractionAdjustingentryrequiredd(i)Book(ii)SubtractionAdjustingentryrequirede(i)Bank(ii)SubtractionNoadjustmentrequiredf(i)Book(ii)AdditionAdjustingentryrequiredg(i)Book(ii)SubtractionAdjustingentryrequiredMcGrawHillCompanies,SolutionsManual,ChapterQuickStudy(minutes)MADISONCOMPANYBankReconciliationJuly,Bankstatementbalance$,Bookbalance$,AddAddDepositofJulyInterestearnedBankerror,,DeductDeductOutstandingchecksBankservicechargeAdjustedbankbalance$,Adjustedbookbalance$,EXERCISESExercise(minutes)EvaluationThecompany’sinternalcontrolsystemfailedtorequireseparationofassetcustodyfromassetrecordkeepingPrinciplesIgnored()Therecordkeepershouldnothavebeenallowedtosignthecompany’schecks()Sincealosswasincurred,thecompanyapparentlyhadnotbondeditsemployeeIfithad,thebondingcompanywouldhaveinsuredthelossIfregular,independentreviewsoftheaccountingrecordshadbeendone,thepaymentsofsalarycheckstoanonemployeemayhavebeendiscoveredearlierExercise(minutes)(a)InternalControlProblems()Amajorinternalcontrolproblemisthattherecordkeeper(whohascontrolovertheaccountingrecords)hasphysicalcontroloverthecashMcGrawHillCompanies,FundamentalAccountingPrinciples,thEditionreceiptsNothinginthesystempreventstherecordkeeperfromtakingcashfromthemailandusingitpersonally()TherecordkeepermightalsodelayrecordingacashreceiptfromacustomeruntilmorecashcomesinatalaterdatefromasecondcustomerThen,thenewcashreceiptwouldbedepositedandrecordedasapaymentmadebythefirstcustomerNoentrywouldbemadeinthesecondcustomer’saccountuntilcashwasreceivedfromathirdcustomer,andsoon(Thistypeoffraudiscalled"lapping")()Therecordkeeperalsocouldpocketcashandclaimthatapaymentwasneverreceivedandapparentlylostinthemail(b)InternalControlRecommendations()Ifonlyonepersonispresentwhenthemailisopened,thatpersonmaystealcashandclaimitwasneverreceivedIfpossible,twopeopleshouldbepresentOtherwise,thehonestyandintegrityofthepersonchosentoopenthemailiscriticalOnemightalsoconsidertheuseofaPOBoxforcashreceiptsbymailasanothercontrolprocedure()ItisimportanttherecordkeepernothavephysicalcontrolovercashMcGrawHillCompanies,SolutionsManual,ChapterExercise(minutes)Acashregister(withalockedrecord)shouldbeusedatthesalesstanditshouldalsobeanchoredtothestandIfacashregistercannotbeused,thetotalsalesvalueofthesunscreen,shirts,andsunglassesgiventotheemployeeeachdayshouldbecalculatedTheemployeeshouldsignareceiptforthemerchandiseandtheamountofcashthatheorshehasbeengivenAttheendofeachday,theemployeeshouldberequiredtoreturncashplusremainingsunscreen,shirts,andsunglassesequaltotheamounttakentothestandpossiblyconsideroneortworeturntripsiftheamountsarelargeTheemployeeshouldsignareceiptforthetotalamountofcashheorsheisgiveneachweekendEachtimetheemployeemakesapurchase,heorsheshouldobtainasignedsalesreceiptforthepaymentThesalesreceiptshouldlisttheitemspurchasedandthepricespaidWhentheemployeereturnstothestore,thetotalvalueofthesignedsalesreceiptsplusanyremainingcashshouldequaltheamountofcashoriginallygiventotheemployeeAlso,themerchandisebroughtbackbytheemployeeshouldbethesameastheitemslistedonthesignedsalesreceiptsMcGrawHillCompanies,FundamentalAccountingPrinciples,thEditionExercise(minutes)JanPettyCashCashToestablishapettycashfundJanPostageExpenseMerchandiseInventory*DeliveryExpenseMiscellaneousExpensesCashToreimbursethepettycashfund*TransportationincostsareincludedinMerchandiseInventoryunderaperpetualsystemJanPostageExpenseMerchandiseInventoryDeliveryExpenseMiscellaneousExpensesCashToreimbursethepettycashfund*JanPettyCashCashToincreasethepettycashfund**ThetwoJanuaryentriescanbecombinedintooneentryMcGrawHillCompanies,SolutionsManual,ChapterExercise(minutes)SeptPettyCashCashToestablisha$pettycashfundSeptMerchandiseInventory*PostageExpensesMiscellaneousExpensesCashShortandOverCashToreimbursethepettycashfund*TransportationincostsareincludedinMerchandiseInventoryunderaperpetualsystemOctPettyCashCashToincreasethepettycashfundto$McGrawHillCompanies,FundamentalAccountingPrinciples,thEditionExercise(minutes)BankBalanceBookBalanceNotShownonAddDeductAddDeductAdjustReconciliationNSFcheckfromcustomerreturnedonSeptbutnotrecordedbythiscompanyxCrInterestearnedontheaccountxDrDepositmadeonSeptemberandprocessedbybankonSeptemberxCheckwrittenbyanotherdepositorbutchargedagainstthiscompany'saccountxBankservicechargexCrChecksoutstandingonAugustthatclearedthebankinSeptemberxCheckwrittenagainstthecompanyaccountandclearedbythebankerroneouslynotrecordedbythecompanyrecordkeeperxCrPrincipalandinterestonanotereceivabletothiscompanyiscollectedbythebankbutnotyetrecordedbythecompanyxDrCheckswrittenandmailedtopayeesonOctoberxCheckswrittenbythecompanyandmailedtopayeesonSeptemberxDepositmadeonSeptemberafterthebankclosedxSpecialbankchargeforcollectionofnoteinNooncompany'sbehalfxCrMcGrawHillCompanies,SolutionsManual,ChapterExercise(minutes)Thevouchersystemofcontrolestablishesproceduresfor:(a)Verifying,approving,andrecordingobligationsforeventualcashdisbursements,and(b)Issuingchecksforpaymentofverified,approved,andrecordedobligationsAllexpendituresshouldbeoverseenbyavouchersystemofcontrol(notonlythepurchaseofmerchandise)ThevoucherisinitiallypreparedbytheaccountingdepartmentwhenitreceivesthepurchaserequisitionfromthedepartmentmakingtherequestorwhenitreceivesreliableevidencethatanobligationhasbeenincurredExercise(minutes)AUSTINCLINICBankReconciliationJune,Bankstatementbalance$,Bookbalance$,AddAddDepositofJune,ErroronCkNo,,DeductDeductOutstandingchecks,BankservicechargeAdjustedbankbalance$,Adjustedbookbalance$,Exercise(minutes)JuneCashUtilitiesExpenseTocorrectajournalentryerrorMiscellaneousExpensesCashTorecordbankservicechargeMcGrawHillCompanies,FundamentalAccountingPrinciples,thEditionPROBLEMSETAProblemA(minutes)ViolatesseparationofdutiesThecompanyshouldimplementapolicywherebythepersonrecordingincomingcashreceiptsisnotresponsibleforpostingthepaymentstothecustomeraccountsViolatestheprincipleofestablishingresponsibilityOnlyJennshouldhaveaccesstothepettycashfundsincesheisthecustodianThecompanyshouldimplementapolicyofnotallowingpettycashtransactionsoverthelunchhourAlternatively,KirstencouldalsoserveasapettycashcustodianwithherownpettycashfundViolatestheproperapplicationoftechnologicalcontrolsWhilethedailybackupisaverygoodinternalcontrol,thetapeneedstobetakenoffthepremiseseverynightIfthebuildingandcomputeraredestroyed,thedatathencanberestoredfromthetapesinceitissafelykeptoffthepremisesThecompanyshouldimplementapolicyofstoringtapesoffthepremisesnightlyViolatesregularandindependentreviewSanjayShalesneedstoimplementawaytoregularlyandindependentlyreviewhisemployeesHiringofinternalauditorsoranoutsideconsultanttoobjectivelyreviewtheinternalcontrolsandtheemployees’workneedstobeimplementedViolatestheinsuringofassetsandthebondingofkeyemployeesWedonothaveenoughinformationtoknowifthecompanycanaffordthemovetothehigherdeductibleonthepropertyinsuranceHowever,wecansaythatdroppingtheinsuranceforbondingtheemployeesweakensinternalcontrolIfthecompanydoesneedtoengageincostcuttingtheyshoulddoitwithoutcompromisingitsinternalcontrolsTheinsuranceforthebondingofemployees(oratleastkeyemployeesandthoseinsensitivepositions)shouldbereinstatedMcGrawHillCompanies,SolutionsManual,ChapterProblemA(minutes)PartFebPettyCashCashToestablishthe$pettycashfundPartBeardGalleryPettyCashPaymentsReport(forFebruary)DeliveryexpenseFebDeliveryofcustomer'smerchandise$MileageexpenseFebReimbursementformileagePostageexpenseFebExpressdeliveryofcontract$FebPostageexpenseMerchandiseinventory(transportationin)*FebCODchargesonpurchasesFebCODchargesonpurchasesOfficesuppliesexpenseFebPurchasedpaperforcopierFebPurchasedstationeryTotal$*TransportationincostsareincludedinMerchandiseInventoryunderaperpetualsystemPartFebDeliveryExpenseMileageExpensePostageExpenseMerchandiseInventoryOfficeSuppliesExpenseCashOverandShortCashToreimbursethepettycashfundFebPettyCashCashToincreasethepettycashfundto$Note:ThetwoFebentriescanbecombinedintooneMcGrawHillCompanies,FundamentalAccountingPrinciples,thEditionProblemA(minutes)PartHAMILTONCOMPANYBankReconciliationJuly,Bankstatementbalance$,Bookbalance$,AddAddDepositofJuly,,Proceedsofnotelesscollectioncharge,,DeductDeductChecksNo$,NSFcheck$Servicecharge,,Error(Check)Adjustedbankbalance$,Adjustedbookbalance$,PartJulyCash,CollectionExpenseNotesReceivable,TorecordnotecollectionlessfeesJulyAccountsReceivableEShawCashTochargeaccountforNSFcheckplusfeesJulyMiscellaneousExpensesCashTorecordbankservicefeeJulyRentExpenseCashTocorrectanentryerrorMcGrawHillCompanies,SolutionsManual,ChapterProblemA(Concluded)PartaIfthecompany'sCashaccountbalanceof$,islistedonthebankreconciliationas$,then:(i)Thefinalbalancethatresultsfromadjustingthebankstatementbalancewillnotbeaffectedbytheerrorand(ii)Thefinalbalancethatresultsfromadjustingthebookbalanceofcashwillbeunderstatedby$($,$,),andthebankreconciliationwillnotbalancebThebank'scollectionofthe$,notelessthe$collectionfeeshouldhavebeenaddedtothebookbalanceofcashInstead,itwasaddedtothebankstatementbalanceAsa

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