Chapter 7 - receipts. Identify the internal control...

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Chapter 7 BE7-3 The internal control procedures in Phillips Company make the following provisions. Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. (segregation of duty) (b) Each month the assets on hand are compared to the accounting records by an internal auditor. (independent internal verification) (c) A prenumbered shipping document is prepared for each shipment of goods to customers. (documentation procedures) BE7-4 Aldstadt Company has the following internal control procedures over cash
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Unformatted text preview: receipts. Identify the internal control principle that is applicable to each procedure. (a) All over-the-counter receipts are registered on cash registers. (physical, mechanical, and electronic controls) (b)All cashiers are bonded. (other control or human resources) (c) Daily cash counts are made by cashier department supervisors. (establishment of responsibility) (d)The duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. (segregation of duty) (e) Only cashiers may operate cash registers. (establishment of responsibility)...
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This document was uploaded on 11/03/2011 for the course ACCOUNTING ac 201 at Montgomery.

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