Exam 7: Fraud, Internal Control and Cash

Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation: The adjusted cash balance per books on August 31 is

Reconciling the bank statement monthly is an example of

Bank errors

Cash register overages are deposited in the petty cash fund and cash shortages are made-up from the petty cash fund.

IFRS, compared to GAAP, tends to be more

The extent of internal control features adopted by a company must be evaluated in terms of costs-and-benefits.

The most important element of the fraud triangle is

A system of internal control is defined, in part, as a plan that safeguards

In preparing a bank reconciliation, outstanding checks are

Internal control is mainly concerned with the amount of authority a supervisor over a subordinate.

A debit memorandum could show the collection of a note receivable by the bank.

In the month of November, Kinsey Company Inc.wrote checks in the amount of $18,500.In December, checks in the amount of $25,316 were written.In November, $16,936 of these checks were presented to the bank for payment, and $21,766 were presented in December.What is the amount of outstanding checks at the end of November?

Checks received through the mail should

Storing cash in a company safe is an application of which internal control principle?

Physical controls to safeguard assets do not include

A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account that is

Related selling activities do not include

In general, documents should be prenumbered and all documents should be accounted for.

If a check correctly written and paid by the bank for $584 is incorrectly recorded on the company's books for $548, the appropriate treatment on the bank reconciliation would be to

An employee authorized to sign checks should not record