10. Which of the following describes the environment in internal control? A) Internal auditors monitor company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
10. Which of the following describes the environment in internal control? A) Internal auditors monitor company controls to safeguard assets, and external auditors Page 2 of 4 monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks 11. Rearranging plain-text messages by a mathematical process is known as A) password B) phishing C) encryption D) virus 12. Two or more people working together to circumvent internal controls and defraud a company is known as A) encryption B) firewall C) collusion D) separation of duties 13. Which of the following is the last step in the daily control over cash receipts by mail? A) A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit. B) The controller opens the mail and sends the remittance advices to the accounting department. C) The controller compares the records of the day's bank deposit amount from the treasurer and the debit to Cash from the accounting department. D) The accounting department prepares journal entries to cash and the customers' accounts 14. Which of the following is used by companies to separate cash duties and establish stronger control over cash receipts? A) an encryption system B) an imprest system C) a lock-box system D) a firewall system 15. Mercury Company established a petty cash fund with a $500 balance. Which of the following statements is incorrect? A) A journal entry is needed to debit the Cash account and credit the Petty Cash account for $500. B) There is no net effect on current assets. C) The sum of the cash plus the total of the petty cash tickets should equal $500 at all times. D) The petty cash custodian cashes a check for $500 and places the currency in the petty cash fund box. 16. The petty cash fund had an initial imprest balance of $230. It currently has $15 in cash, $3 in miscellaneous petty cash tickets, and an additional $207 in specific petty cash tickets. The debit to Cash Short & Over would be A) $5 B) $15 C) $207 D) $210 10. Which of the following describes the environment in internal control? A) Internal auditors monitor company controls to safeguard assets, and external auditors Page 2 of 4 monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks 11. Rearranging plain-text messages by a mathematical process is known as A) password B) phishing C) encryption D) virus 12. Two or more people working together to circumvent internal controls and defraud a company is known as A) encryption B) firewall C) collusion D) separation of duties 13. Which of the following is the last step in the daily control over cash receipts by mail? A) A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit. B) The controller opens the mail and sends the remittance advices to the accounting department. C) The controller compares the records of the day's bank deposit amount from the treasurer and the debit to Cash from the accounting department. D) The accounting department prepares journal entries to cash and the customers' accounts 14. Which of the following is used by companies to separate cash duties and establish stronger control over cash receipts? A) an encryption system B) an imprest system C) a lock-box system D) a firewall system 15. Mercury Company established a petty cash fund with a $500 balance. Which of the following statements is incorrect? A) A journal entry is needed to debit the Cash account and credit the Petty Cash account for $500. B) There is no net effect on current assets. C) The sum of the cash plus the total of the petty cash tickets should equal $500 at all times. D) The petty cash custodian cashes a check for $500 and places the currency in the petty cash fund box. 16. The petty cash fund had an initial imprest balance of $230. It currently has $15 in cash, $3 in miscellaneous petty cash tickets, and an additional $207 in specific petty cash tickets. The debit to Cash Short & Over would be A) $5 B) $15 C) $207 D) $210
Expert Answer:
Answer rating: 100% (QA)
10 The environment in internal control is designed to ensure that the business earns profit by protecting and safeguarding the assets of the company Internal auditors monitor the company controls to e... View the full answer
Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
Posted Date:
Students also viewed these accounting questions
-
Which of the following describes the inflation-unemployment trade off? Question 21 options: a. Monetary policies that expand the money supply and lower interest rates will lower inflation and...
-
Which of the following two statements involves positive economic analysis and which normative? How do the two kinds of analysis differ? a. Gasoline rationing (allocating to each individual a maximum...
-
Which of the following can be true? If an answer is false, state why it is false a. A CDF Fx(x) can be 1 for two or more values of x. b. A density fx(x) can be 1 for two or more values of x. c. A...
-
1. Green logistics advocates a type of SCM that minimizes the environmental impacts including climate change, air pollution, water pollution, soil degradation, solid waste, noise, vibration, and...
-
Given the following information, calculate the amount by which gross profit would differ between FIFO and LIFO. Assume the periodic system. Beginning inventory ....... 500 units at $50 per unit...
-
Explain why the percentage of total audit time in the cycle devoted to performing tests of controls and substantive tests of transactions is usually far greater for the payroll and personnel cycle...
-
Given the background reading, list three verbal deception and three non-verbal deception cues that you believe that Aldrich Ames might exhibit and describe why
-
(One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2010 that will reverse and cause taxable...
-
We need to map following EERD into RELATIONAL MODEL. Map the following EERD into relational model ArtistNumber Artist Name N FormationDate Group Group-Member SoloPerformer BirthDate JoinedDate...
-
X rays with initial wavelength 0.0665 nm undergo Compton scattering. What is the longest wavelength found in the scattered x rays? At which scattering angle is this wavelength observed?
-
What should be the current price of a bond that pays $2 one year from now, where the payment will increase by 5% each year forever after the first payment? Assume that the discount rate is 12%....
-
A brief definition of the following language terms with an example of each: phonology, morphology, sound-symbol relationship, semantics, discourse, syntax.
-
Peptidoglycan of a gram-positive bacteria bind with TLR-2 over the cell surface. How does the concerned cell will react thereafter ?
-
Jack repays his loan in 16 level annual installments. The first payment is at the end of the first year. The principal portion of the 9th payment is $65.85 and the interest portion is $22.21....
-
Determine the %yield of CaCO 3 if 0.110gr of CaCO 3 was produced from the reaction between 24ml of 0.12M of CaCl 2 with 30ml of 0.08 of Na 2 CO 3.
-
Discuss the ways in which culture and technology coincide. Give an example from your own experience or the experience of others where culture and technology have impacted one another. Is it possible...
-
(a) By inspection of the matrix R, find the rank and nullity of A. (c) Find the number of leading variables and the number of parameters in the general solution of Ax = 0 without solving the system....
-
Difference between truncate & delete
-
What are the two types of prospective financial statements? How do they differ from each other?
-
How do management assertions relate to the financial statements?
-
Perez, CPA, has been asked by a nonpublic company audit entity to perform a nonrecurring engagement involving implementing an IT information and control system. The entity requests that, in setting...
-
Wakuluk is most likely to make significant adjustments to her estimate of the future growth trend for which of the following countries? A. Country Y only B. Country Z only C. Countries Y and Z Neshie...
-
Wakuluks approach to economic forecasting: A. is flexible and limited in complexity. B. can give a false sense of precision and provide false signals. C. imposes no consistency of analysis across...
-
Wakuluk most likely seeks to mitigate which of the following biases in developing capital market forecasts? A. Availability B. Time period C. Survivorship Neshie Wakuluk is an investment strategist...
Study smarter with the SolutionInn App