Exam 12: Administrative Processes and Controls

When management designs and implements effective administrative processes:

Today's automated accounting process:

Fraud associated with the capital and investment process is:

Select the correct statement from those listed below.

Equity is considered:

Which of the following statements is true regarding internal controls of capital and investment processes?

To set a proper ethical tone, top managements should measure several factors of managerial performance without over-emphasizing profitability or cost cutting.

Service firm internal reports are more likely to focus on sales and the status of projects.

When management designs and implements effective administrative processes:

Which of the following statements is FALSE?

The raising of capital:

Administrative processes are transactions and activities that either are specifically authorized by top managers or are used by managers to perform administrative functions.

Source of operational processes are those processes to authorize the raising of capital, execute the raising of capital, and to properly account for that capital.

Capital funds are acquired through the issuance of:

Select the answer that contains only internal reports.

For both source of capital processes and investment processes, the important control is the specific authorization and oversight by top management.

An example of good internal control is having one person responsible for the value of the total of the sales in the sales journal and another person responsible for the balance of sales in the general ledger.

Employees are more likely to hide or conceal fraudulent activity in the records of fixed assets and capital acquisition events than elsewhere.

Closing entries are:

The sale of bonds should be considered a regular, recurring process since these types of transactions are recorded in the general ledger.