Exam 6: Cash and Internal Control

The following set of items describes activities completed by a company in collecting cash for merchandise sales.For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. An employee in the accounting department records cash receipts from customers and prepares a bank deposit slip.

What five-member body created by the Sarbanes-Oxley Act was given authority to set U.S.auditing standards?

If a company records a $310 receipt as $130, this type of error is called an) .

Which of the following statements is true regarding a credit memorandum?

How would deposits in transit be dealt with in a bank reconciliation?

controls within a company are more concerned with efficient operations and the adherence to management policies than with the accurate reporting of financial information.

An) is a form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

A purchase order is not the basis for recording a purchase and a liability.

The debit balance in Cash Short and Over at the end of an accounting period is reported as

The department in an organization that is responsible for preparing the invoice approval form to document all of the information about a particular purchase is:

If a company erroneously records a $500 deposit as $400 in its books, which of the following must occur when reconciling the bank statement?

controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements.

The notification accompanying a check that indicates the specific invoice being paid is called a

Each of the following documents is used in the control of cash disbursements except:

An internal control system consists of all the following policies and procedures except:

Which one of the following items would be added to the balance per books in a bank reconciliation?

Which one of the following items is not included in cash?

The establishment of a petty cash fund has no effect on the company's total cash balance.

Audit committees are required to consist of only directors who are key officers of the company.

As part of good internal control, disbursements can be made either by check or cash.