Question: How does separation of the record keeping function from custody of assets contribute to internal control?

How does separation of the record keeping function from custody of assets contribute to internal control?

Step by Step Solution

★★★★★

3.46 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Separating recordkeeping from custody of the related assets provides a... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

336-B-A-A-A-N (943).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

4. On RummyCircle, the player journey works in the following fashion: a. b. A player creates his account. He is now eligible to participate in free to play rummy games. The player makes a deposit to...

Q:

The separation of operational responsibility from record keeping is meant to prevent different types of misstatements than the separation of the custody of assets from accounting. Explain the...

Q:

How does concurrency control contribute to financial data integrity?

Q:

How does separation of the record keeping functions from custody of assets contribute to internal control

Q:

7-1 7-2 and 7-9 Written narrative of internal control (268) A written summary of internal control for inc audit working papers. Written narratives are more flexible than questionnaires, but by t...

Q:

1. Henry Bailey, CPA, is planning the audit of The Neighborhood Store, a local grocery cooperative. Because The Neighborhood Store is a small business operated entirely by part-time volunteer...

Q:

7 - 2 . 7 - 3 . 7 - 4 . 7 - 5 . 7 - 6 . Identify the five components of an organization's internal control. List the principles related to an organization's control environment. How does separation...

Q:

How does separation of the record-keeping function from custody of assets contribute to internal control?

Q:

During the month of July, Clanton Industries issued a check in the amount of $756 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation,...

Q:

Fraud is intentional deceit or trickery that results in a misstatement of the financial statements. Management is responsible for taking steps to reduce the risk of fraud. After quite a few instances...

Q:

Compare cost of goods manufactured for a manufacturing business with cost of goods sold for a merchandising business.

Q:

Consider the composite body shown. Determine (a) The value of x when h = L/2, (b) The ratio h/L for which x = L.

Q:

The In - Tech Company just paid a dividend of $ 1 . 8 0 per share. Analysts expect its dividend to grow at 2 0 percent per year for the next three years and then 4 percent per year thereafter. If the...

Q:

An investor worried about a companys long-term solvency would most likely examine its: A. current ratio. B. return on equity. C. debt-to-equity ratio.

Q:

Prospect Corporation, your new audit client, processes its sales and cash receipts in the following manner: (1) Sales. Salesclerks prepare sales invoices in triplicate. The original and second copy...

Q:

You have been asked by the board of trustees of a local church to review its accounting procedures. As part of this review you have prepared the following comments relating to the collections made at...

Q:

An information systems department usually performs numerous IT processing functions that would be separated in a manual system. Does this imply that separation of duties is not a practical means of...

Q:

Fundamental Analysis uses a company's financial statements to evaluate the company's financial health and potential profitability. REQUIRED: a. List and describe two analytical techniques that...

Q:

You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $320 per unit and sales volume...

Q:

Use the following balance of payments data for Australia to determine their balance on oods and services for the current year. Please show your work Asumptions Value in milions USO Goods: exports...