Exam 4: Internal Controls,accounting for Cash,and Ethics

In performing the bank reconciliation for Bounds Company,a company employee found that the bank had collected one of the company's notes receivable in the amount of $2,000 and had deposited this amount in the company's account at the bank.This amount did not include interest.

To reduce the likelihood of conflicts of interest,SOX prohibits registered public accounting firms from providing the following contemporaneously with the audit:

What internal control procedures should a business adopt with respect to cash payments?

While performing its monthly bank reconciliation,the bookkeeper for the Partin Company discovered that a check written for $421 for advertising expense was recorded in the firm's books as $241.Which of the following shows the effect of the correcting entry on the financial statements?

On November 30,2012,Chee Company's bank statement showed an ending balance of $16,841.The following information is available about Chee's account: 1.Debit memo in bank statement for bank service charge,$39 2.Deposit in transit,$1,988 3.Outstanding checks,$2,156 4.Customer's NSF check for $723 was returned with the bank statement Required: a)Determine the true cash balance as of November 30,2012 b)Determine the unadjusted balance of the company's Cash account as of November 30,2012.

The April 30,2012 bank statement for Tuttle Corporation shows an ending balance of $34,451.The unadjusted cash account balance was $28,350.The accountant for Tuttle gathered the following information: 1.April's deposit in transit was $4,240 2)The bank statement reports a service charge of $39 3)A credit memo included in the bank statement shows interest earned of $95 4)Outstanding checks totaled $10,935 5)The bank statement included a customer's $650 NSF check deposited in April What is the true cash balance as of April 30,2012?

Which of the item(s)would be added to the unadjusted bank balance to determine the true cash balance?

Assuming that the unadjusted bank balance was $600,determine the unadjusted book balance.

When a customer's NSF check is returned to a business,the business should record an uncollectible account loss.

An element that is often present when fraud occurs is

What documentation issued by a bank increases a company's checking account balance at the bank?

The qualified opinion is the most favorable opinion that can be expressed by an independent auditor.

At the end of the month,Grant Entertainment Company showed a $9,300 book balance in its cash account.The following information was gathered by studying the bank statement and the company's cash records: (1)deposits in transit amounted to $3,150 (2)outstanding checks were $6,200 (3)a $550 check had been incorrectly drawn on Grant's account by the bank (4)NSF checks returned by the bank were $750 (5)bank service charge was $29 (6)credit memo for $75 for the collection of one of the company's account receivable Based on the above information the true cash balance would be:

Identify and discuss the three basic types of audit opinions.

In performing the bank reconciliation for Bounds Company,a company employee found that the bank statement included a bank service charge of $12.

Discuss the three elements that are typically present when fraud occurs.

Which of the following is not a reason why a business needs strong internal controls over cash?

Which of the following is not a procedure for control of cash payments?

Which of the following is an internal control procedure used to safeguard a company's assets?

At June 30,2012,the bank reconciliation of Swale Company reveals deposits in transit of $2,000.