In Case 6.1, if the petty cash custodian were replaced and the frequency of fund reimbursement decreased from every two days to every four days, what might you suspect?
Answer to relevant QuestionsWhat is the difference between a normal procedure and an extended procedure?What specific control procedures (in addition to separation of duties and responsibilities) should be in place and operating in internal controls governing revenue recognition and cash accounting?What special care should be taken with regard to examining the sources of accounts receivable confirmation responses?Which of the following accounts is not normally part of the revenue and collection cycle? a. Sales b. Accounts Receivable. c. Cash. d. Purchases Returns and AllowancesWhich of the following responses to an accounts receivable confirmation at December 31 would cause an audit team the most concern? a. “ This amount was paid on December 30.” b. “ We received this shipment on January ...
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