PQ w8(1) - ACCT1501 2011Sem2 Preparation Question Solution...

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ACCT1501 2011Sem2 Preparation Question Solution 1 Preparation Questions: DQ 7.2, 7.6, 7.8, 7.9, 7.11; P7.5, 7.11; Additional Question 2 DQ7.2. The main components of internal control are: i Run the enterprise competently ii Establish clear lines of responsibility iii Maintain effective records iv Separate record-keeping from handling assets v Adequately pay and motivate employees vi Carry insurance on assets vii Physically protect sensitive assets. DQ7.6. Internal controls over cash i Payments should only be made for properly authorised documentation. ii Cheques should be signed by two staff members who are independent of invoice approval and accounting duties. iii Original invoices should be stamped ‘paid’ to ensure they are not subsequently represented for payment. iv Mail openers should not also have duties related to the cashiers or record-keeping. DQ7.8. The purpose of the bank reconciliation statement is to explain any differences between the bank balance at the end of the period as shown in the bank statement and in the firm’s ledger, respectively. Any errors discovered may be rectified before completing the journals and postings for the period. DQ7.9.
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This note was uploaded on 10/20/2011 for the course COMMERCE 3502 taught by Professor All during the One '11 term at University of New South Wales.

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PQ w8(1) - ACCT1501 2011Sem2 Preparation Question Solution...

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