Acct12_Ch08_WP_templates.xlsx - HORNGREN'S ACCOUNTING 12th Edition 1 What is internal control 2 How does the Sarbanes-Oxley Act relate to internal

Acct12_Ch08_WP_templates.xlsx - HORNGREN'S ACCOUNTING 12th...

This preview shows page 1 - 10 out of 59 pages.

HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 1 of 59 1. What is internal control? 2. How does the Sarbanes-Oxley Act relate to internal controls? 3. What are the five components of internal control? Briefly explain each component. 4. What is the difference between an internal auditor and external auditor? 5. What is separation of duties?
Image of page 1

Subscribe to view the full document.

HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 2 of 59 6. List internal control procedures related to e-commerce. 7. What are some limitations of internal controls? 8. How do businesses control cash receipts over the counter? 9. How do businesses control cash receipts by mail? 10. What are the steps taken to ensure control over purchases and payments by check? 11. What are the controls needed to secure the petty cash fund?
Image of page 2
HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 3 of 59 12. When are the only times the Petty Cash account is used in a journal entry? 13. 14. What are some common controls used with a bank account? 15. What is a bank reconciliation? 16. List some examples of timing differences, and for each difference, determine if it would affect the book side of the reconciliation or the bank side of the reconciliation. 17. Why is it necessary to record journal entries after the bank reconciliation has been prepared? Which side of the bank reconciliation requires journal entries? 18. What does the cash ratio help determine, and how is it calculated? What are two common methods used when accepting deposits for credit card and debit card transactions?
Image of page 3

Subscribe to view the full document.

HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 4 of 59 S8-1 Requirements 1. Which objective do you think is most important? 2. Solution: Requirement 1 Requirement 2 Which objective do you think must the internal controls accomplish for the business to survive? Give your reason.
Image of page 4
HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 5 of 59 S8-2 What will alert Megan McKinney, the controller, that something is wrong? Solution:
Image of page 5

Subscribe to view the full document.

HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 6 of 59 S8-3 Solution: Exactly what is accomplished by the final step in the process, performed by the controller?
Image of page 6
HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 7 of 59 S8-4 Requirements 1. How could this purchasing agent cheat his company? 2. How could Franklin avoid this internal control weakness? Solution: Requirement 1 Requirement 2
Image of page 7

Subscribe to view the full document.

HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 8 of 59 S8-5 Solution: Date Accounts and Explanation Debit Credit Prepare the journal entries for the petty cash transactions of Everly Gaming Supplies.
Image of page 8
HORNGREN'S ACCOUNTING - 12th Edition Chapter 8: Internal Control and Cash Page 9 of 59 S8-6 1.
Image of page 9

Subscribe to view the full document.

Image of page 10
  • Spring '19
  • Excel

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes