Exam 4: Ethics, Internal Control, and Cash

During an audit, who is responsible for confirming and validating the accounting record?

In Canada, external auditors must now report to __________.

For each of the following independent situations, identify the internal control element and make a recommendation to improve internal control. 1. Graphic Games is a very busy small company. The blank cheques are available in the box beside the printer for easy access to printing. 2. At Patel's Plumbing, the accounting clerk issues and authorizes the payments.

Name the two forms of fraud explained in your textbook.

Cash is listed first on the balance sheet because it is the least liquid asset.

Treasury bills and Treasury notes are considered cash equivalents if they mature within __________ days of the balance sheet date.

Establishing fake companies, then having the company pay for goods or services that will never be delivered, and then intercepting and cashing the cheques would be an example of a(n) __________.

________ can be reduced through a good system of internal control.

CIBC Bank collected a $450 note from a customer for ABC Company. In preparing the bank reconciliation, identify the side this transaction would appear on.

The petty cash fund of $500 includes the following activity for the month of March. Cash $294.00 Delivery Expense $89.00 Postage 55.00 Flowers for a special celebration 25.00 Meals 30.00 Requirements: 1. Prepare general journal entries+ to replenish the petty cash fund. 2. On April 1, the controller gives instructions to decrease the petty cash fund by $50. Make the appropriate journal entry.

Details that support business transactions make up a(n) __________.

List the four parts of a well-defined internal control system.

Identify each of the following as an example of perceived pressure (PP), perceived opportunity (PO), or rationalization (R) in the fraud triangle.

The cash register provides control over the cash receipts for a retail business.

If possible, the bank reconciler should have no other duties relating to cash transactions in the business.

After the mail room employee open the cash receipts, the cheques then go to the __________.

For fraud to occur, three things must exist. Identity the three things.

__________ embezzlement is a form of fraud committed against an organization.

There are five key elements that affect an organization's internal control system. Name the elements.

Prior to SOX, external auditors often reported to a company's upper management.