Quick check and quiz answers -- chapter four

Quick check and quiz answers -- chapter four - Chapter Four...

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Chapter Four – Quick Check – Page 241 Problem 1. 1. This procedure limits access to sensitive data – Firewalls Firewalls prevent unauthorized access to computer files. 2. This type of insurance policy covers losses due to employee theft – Fidelity Bond or Surety Bond Many jobs require that employees which handle cash (card dealers, cashiers, etc.) be bonded. You may become unbondable due to felony convictions, poor credit, etc. 3. Trusting your employees can lead you to overlook this procedure – separation of duties or adequate supervision (the text likes this one) Much embezzlement occurs because a trusted employee has been stealing from the company for a long period of time. Separations of duties requires separation of: authority; record keeping; reconciliation; and custody of assets. 4. The most basic purpose of internal control – safeguard assets Internal control should safeguard assets and maintain the credibility of the company’s record keeping system. 5. Internal control cannot always safeguard against this problem – Collusion Collusion is when two employees work together to thwart the controls. What this does is collapse the separation of duties since the two people are now effectively one. 6. Often mentioned as the cornerstone of a good system of internal control – Separation of Duties See discussion in 3 above. 7. Pay employees enough to require them to do a good job – Competent Personnel Hire good people and treat them right and they are less likely to steal from you.
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Problem 2. Each of the following is an example of a control procedure,
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This homework help was uploaded on 04/15/2008 for the course ACC 2302 taught by Professor Davehurtt during the Spring '08 term at Baylor.

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Quick check and quiz answers -- chapter four - Chapter Four...

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