Chat 7 Solutions (CH7)

Chat 7 Solutions (CH7) - Chapter 07 - Internal Control Chat...

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Chapter 07 - Internal Control Chat 7 Solutions Problems 7-40 SOLUTION: Orange Corporation ORANGE CORPORATION Raw Materials Recording and Transferring System Flowchart December 31, 20__ 7-1
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Chapter 07 - Internal Control 7-43 SOLUTION: Church Cash Receipts Part (a) Weakness Recommended Improvement 1. Financial secretary exercises too much control over collections. To extent possible, finance secretary’s responsibilities should be confined to recordkeeping. 2. Finance committee is not exercising its assigned responsibility for collections. Finance committee should assume a more active supervisory role. 3. The internal auditing function has been assigned to the finance committee, which also has responsibility for the administration of the cash function. Also, the finance committee has not performed the internal auditing function. An audit committee should be appointed to perform periodic internal auditing procedures or outside auditors should be engaged. 4. The head usher has sole access to cash during the period of the count. One person should not be left alone with the cash until the amount has been recorded or control established in some other way. The number of cash counters should be
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This note was uploaded on 01/10/2012 for the course ACC 435A taught by Professor Hathcock during the Winter '11 term at National.

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Chat 7 Solutions (CH7) - Chapter 07 - Internal Control Chat...

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