Exam 5: Fraud, Internal Control, and Cash

On a bank reconciliation,the amount of an unrecorded bank service charge is

The use of internal controls guarantees protection against losses due to fraud,errors,and inefficiencies.

The following information is available for the Tierney Company for the month of November. -On November 30,after all transactions have been recorded,the balance in the company's Cash account has a balance of $27,202. -The company's bank statement shows a balance on November 30 of $29,279. -Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459. -Included with the bank statement was a credit memo in the amount of $770 for an EFT in payment of a customer's account. -The bank deducted $67 for an NSF check from a customer deposited on November 22. -A deposit placed in the bank's night depository on November 30 totaled $1,675 and did not appear on the bank statement. -Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450,but was recorded in the accounting records as $2,540. -Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. Required: Prepare a bank reconciliation for Tierney Company as of November 30.

A good voucher system includes procedures and approvals designed to control cash payments.

Cash equivalents would include:

On a bank statement,deposits are listed as debits and cleared checks are listed as credits.

If a cashier rang up sales totaling $5,096,but had $5,100 to deposit,which journal entry would be recorded?

Internal control consists of the actions taken by people at every level of an organization to achieve its objectives relating to operations,reporting,and compliance.