* (1) Duplicate paychecks might be issued. * (2) The wrong hourly rate could be used to calculate gross pay. * (3) Employees might be paid for hours they did not work. * (4) Payroll checks might not be distributed to the appropriate employees. * c. The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the * (1) human resource function from the controllership function.
c. (3) expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit. d. (3) The sales system automatically computes the total sale amount and posts the total to the sales journal master file. 12-18 a. (1) A system that performs relatively uncomplicated processes and produces detailed output. b.
Likewise, in the case of bad or doubtful debts, an estimate for provision is usually done to know as to how much of the trade receivables the company might not be receiving. This provision is created to safeguard the company from the losses from debts. Given these points, estimation appears to be beneficial. However, “estimates are inherently subjective and therefore lack precision as they involve the use of management's foresight in determining values included in the financial statements” (Accounting-simplified.com, 2013). They can sometimes downsize the dependability on the
What additional alternative audit procedures do you believe the Hanauer auditors should have applied to those accounts that the client did not want confirmed? 4. Define a material audit scope limitation in general terms. Do you agree with the SEC that Hanauer’s management imposed a material scope limitation on its annual audits? 5.
12.6. Create a questionnaire checklist that can be used to evaluate controls for each of the four basic activities in the revenue cycle (sales order entry, shipping, billing, and cash collections). A.) For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be, “Are customer credit limits set and modified by a credit manager with no sales responsibility?” B.)
The chance of future events’ occurrence is small. When the company recognizes the likelihood of a loss, contingencies are charged against income and a liability is recorded if conditions are met. 1. Information available prior to the issuance of the financial statements states that the company probable impairs an asset or incurs a liability at the date of the financial statements. 2.
1 Research Proposal: Improving Information Management RES/351 Improving Information Management 2 Research Proposal: Improving Information Management A company's inability to manage information efficiently can have a devastating effect on the organizations ability to operate effectively. The research proposal presented in this paper has the intentions of addressing the problem of mismanaged information that has resulted in a loss of time, money, and resources for the Corporate Security Initiatives Corporation. This research study will be a straightforward investigation and examination of the way information is sent and received, processed, analyzed, and used by the various departments within the organization. This proposal outlines the research process and design to be used to collect and analyze data, draw conclusions from that data, and how the results from the research will be presented to the company's leaders. Research Design and Process Companies today operate in a fast paced, highly competitive environment in which every decision, large or small, can have a dramatic effect on an organization's success.
Table of Contents Cover Page 1 Table of Contents 2 Introduction 3 Report 3 Conclusion………………………………………………………………………………...4 Work Cited Page………………………………………………………………………….5 Introduction An assessment of system controls has been conducted for LBJ Company prior to going public. In order to detect and minimize the potential for fraud, the following control activities were audited: establishment of responsibilities, segregation of duties, documentation procedures, physical controls, independent internal verification, and human resource controls. All are important for restricting responsibility and reduce the possibility of abuse. Report After reviewing the current system of internal controls the following additional internal control requirements are recommended before going public: segregation of duties, rotation of duties, establishment of responsibilities, independent physical controls, and cash controls. Currently the following controls are in place or are being considered and should be put in use: the use of pre-numbered invoices and the purchase of an indelible ink machine to print checks.
2. Risk assessment – Involves a thorough assessment which “identify(s) risks, estimate their significance and likelihood, and consider how to manage the risks” (Louwers, Ramsay, Sinason, & Strawser, 2007). 3. Control activities – Involve specific actions which help ensure that management’s objectives and expectations are carried out. 4.
Microsoft’s Four Phases of Risk Management Microsoft’s stance on security and risk management is that it should be integrated into the general management of an organization so that the organization can “make better, more informed decisions.” (Whitman & Mattord, 2010). Risk management exists to examine the many security risks, and then prioritize and manage them. To that end, Microsoft developed four phases for managing risk: assessing risk, conducting decision support, implementing controls and finally, measuring program effectiveness (Whitman & Mattord, 2010). The first phase, Assessing Risk, involves first planning how to collect risk data, then actually gathering the data. Finally, prioritizing the risks; using both qualified and quantifiable measurements to prioritize the risks collected.