Extra observance by the internal auditor is given to payroll to maintain integrity in the transfer of funds to the general account to cover payroll expense. Payroll is authorized and collected through a time clock and authorized by supervisors. Personnel approve all new hires and payroll changes. After funds have been transferred from the general account to the employees’ account by electronic fund transfer, Mary Costain, the treasurer, compares the payroll register with the transfer
Therefore, all charges and requests for payment should be confirmed via a receipt for that individual purchase. The use of receipts provides evidence for both the person approving purchases and the person accounting for purchases. 2. The internal control weaknesses in scenario 2 center around a company’s cash disbursements. The first internal control weakness is the point in time purchases are approved.
As an auditor, understanding and testing internal control over financial requires knowledge of standards applicable to the corporation established by GAAP or IFRS. Section 404 of the Sarbanes-Oxley Act requires mandatory reporting on internal controls by management and independent auditors. To obtain a system of internal control as mandated by Section 404 of the Sarbanes-Oxley, policies and procedures designed to provide reasonable assurance of the companies’ effort in achieving its objectives and goals. Committee of Sponsoring Organizations of the Treadway
As controller, Wayne should inform management and understand what is acceptable according to the GAAP. Wayne Terrago should know where properly to report all financial expenses and income the company deals with. As controller it is part of his duty to express to the board the correct expensing of the advertising expense. He should know that advertising costs are generally expensed in the period in which they are incurred (Weygandt, Kieso, & Kimmel, 2010). Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2010).
Work Breakdown Structure (WBS) will breakdown project scope and requirements into groups of component tasks that will be manageable Schedule Management Plan will provide a process to gather, analyze, develop and control the schedule of project activities. Given the specific requirements for resource scheduling and lessons learned from previous project, it will be important to align the schedule to resource availability and
PART 1 Q1. Explain how you will identify and understand the scope of the project you have been assigned? What documentation do you think you will need to source? In order to define the scope of a project, it is necessary to first establish the project objectives and it is the role of the project manager to see that their team or contractors deliver a result that meets the specified functions and features. To define a project scope, you must first identify the following things: • Project objectives • Goals • Sub-phases • Tasks • Resources • Budget • Schedule in the case of Red, it is the responsibility of the project manager to clearly communicate what the project is, who requires it, why, what is it designed to achieve, resources available, who will be involved and who will be affected by the end result.
The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly. C. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers. D. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. AICPA AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Risk Analysis Bloom's: Application Difficulty: Hard 32. Which of the following internal control activities most likely would assure that all billed sales are correctly posted to the accounts receivable ledger?
It shows all costs and all revenues, divided into several categories. Monitoring the flow of funds is relation of the monitoring of changes in assets and liabilities, with the balance of cash flows for the everyday, conditioned state assets and liabilities of the past days and balance of planned giving and receiving days. Cash flow statement shows cash flows from operating activities, investing activities and financing activities. Company’s ability to generate cash is the most important indicator of its success. The main purpose of the cash flow statement is to allow external users to assess the solvency and profitability of the company, to ensure the safety of their investment decisions.
Internal users that use the financial statements would be accounting personnel, departments heads, corporate auditors, business unit leaders, and top management. These financial statements provide specific and varying data to all the internal users. For the accounting personnel, the objective is to prepare and present any accurate and complete data according to the norms. Department heads and leaders bring different perspectives to financial issues by undergoing accounting reports. Internal auditors, these accounting reports light on the tools a company uses to comply with all the rules.
BSBFIM501A - Manage budgets and financial plans Written / Oral Questions 1. Why do organisations need accurate and timely financial information? What information is required to manage the organisation’s finances? Who is usually responsible for an organisation’s financial management? -Financial management ensures that a business is monitoring their finances.