Exam 7: Fraud, Internal Control and Cash

The principles of internal control include all of the following except

The principle of establishing responsibility does not include

The responsibility for ordering, receiving, and paying for merchandise should be assigned to different individuals.

Winter Gloves Company had checks outstanding totaling $12,800 on its May bank reconciliation.In June, Winter Gloves Company issued checks totaling $79,800.The July bank statement shows that $71,400 in checks cleared the bank in July.A check from one of Winter Gloves Company's customers for of $2,000 was also returned marked "NSF." The amount of outstanding checks on Winter Gloves Company's July bank reconciliation should be

Journal entries are required by the depositor for all of the following except

Control over cash disbursements is improved if major expenditures are paid by check.

An accounts payable clerk also has access to the approved supplier master file for purchases.The control principle of

Management is responsible for establishing a system of internal control.

In the month of May, Kijak Company Inc.wrote checks in the amount of $84,000.In June, checks in the amount of $114,000 were written.In May, $75,000 of these checks were Presented to the bank for payment, and $99,000 in June.What is the amount of Outstanding checks at the end of May?

A remittance advice attached to a company check provides

Bacher Company developed the following reconciling information in preparing its September bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Bacher Company.

If a petty cash fund is established in the amount of $250, and contains $153 in cash and $94 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

In a voucher system, vouchers are prepared in the accounts receivable department.

From an internal control standpoint, the asset most susceptible to improper diversion and use is

A $100 petty cash fund has cash of $17 and receipts of $86.The journal entry to replenish the account would include a

An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as check on the other.

What percentage of companies worldwide have experienced fraud in a recent 12-month period?

A deposit made by a company will appear on the bank statement as a

Cash equivalents could include each of the following except

When two or more people get together for the purpose of circumventing prescribed controls, it is called