Chapter 7 hmw - because of billing falsely. Office manager...

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Omer Kilic 7.43) a) Counting and placing the offerings, notation of the amount counted should not be done by only one employee. Instead they should be segregated. Unissued prenumbered documents should be maintained at all times. b) Internal control and independent audits are required to decrease the probability of misstatements. Access should be restricted to important data and documents. Jobs should be segregated. 7.45) Significant Deficiency Potential misstatement Approving credits shouldn’t be made by physicians and it should be done my using credit scores Uncollectible accounts expense could be understated Billing process should be verified by an independent. Cash received and accounts receivable could be overstated or understated because of mathematical errors. Someone needs to verify. Billings shouldn’t be prepared by employees which are also responsible for handling cash receipts Cash or accounts receivable could be understated
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Unformatted text preview: because of billing falsely. Office manager who makes bank deposits also reconciles bank statements. It should be segregated The cash balance could be overstated because of notl depositing the whole amount of the cash. 7.46) a) Tylers work can be relevant to Norths work in the means of internal control policies and procedures. Tylers can provide useful information for North related with his company General Co. Also by checking results of Tyler work he can have an overview on possible records that are misstated by using checking numbers such as, the average net income of their sector. b) He needs to decide if Tylers work is objective and accurate. One of the ways of checking it is inquiring his relation with this company. 7.47) CASE A CASE B CASE C 1 Low Moderate Maximum 2 Tests performed none None 3 Max Moderate Low Moderate Low 4 lowest low moderate High Highest 5 Highest High Moderate Low Lowest...
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This note was uploaded on 10/21/2008 for the course ACCT 4377 taught by Professor Khumuwala during the Spring '08 term at University of Houston.

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