Exam 4: Ethics, Internal Control, and Cash

Tofino Enterprises has a petty cash fund of $275. At the end of June, $14.37 remains in the fund along with $269.43 in various receipts. The journal entry to replenish the fund would be:

A code of behaviour defines the standards of behaviour that all members of an organization are expected to follow.

Based on the fraud triangle, finding good reasons for doing things that we really know are wrong is an example of __________.

The __________ verifies the amount of the deposit and the total amount posted to the cash account.

An employee who pockets cash received from a customer without recording the transaction is conducting a __________.

Internal control systems:

Cash equivalents include very liquid, very safe short-term investments. Provide examples of cash equivalents.

Prepare a bank reconciliation for Brandon Company for July 31, 2013 from the following information:

In a bank reconciliation, the bank balance and the book balance must be adjusted to be reconciled.

Cash is one of the least vulnerable assets that a business has.

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

Whistleblowers must be allowed to report ethics violations:

Besides using an overstatement of earnings to inflate a company's share price, overstating earnings may also be used to:

A code of ethics should be: