1. A control which relates to all parts of the EDP system is called a(n) a. Systems control c. Applications control b. General control d. Universal control 2. Which of the following is not an output control? a. Proper authorization of transaction b. Control totals c. Check digits d. Adequate documents 3. Should the auditor feel, after obtaining an understanding of the EDP internal control structure, that control risk cannot
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ACC504 INTERNAL CONTROL DR. MICHAEL ABNER PREPARED BY NELLY OYANE Table of Contents Introduction I. Internal Control Requirements II. What the Company is Doing Correct III. What the Company is Doing Incorrect Conclusion References Introduction LBJ Company is presently conducting a decision to go public or not and with that they will also be familiar with their internal controls inside their
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cash, accrual basis accounting, and unearned and accrued revenue. In week three several topics were discussed including, accounting information and tools, the balance sheet, calculating profit and loss, cash control and assessing financial performance. In week four we covered internal controls and the Sarbanes-Oxley Act. We wrapped up the course discussing what motivates companies to invest. There was a great deal of information presented in this course especially considering it was crammed into
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that it has been properly made upon the books of account". b. The emphasis is on ascertaining- i) That every entry in the books of account is supported by a voucher and that no voucher has gone unrecorded in the books of account; ii) That the transaction is genuinely concerned with the business iii) That the amount involved in the transaction has been accurately recorded and iv) That the entry has been made correctly in the appropriate account C. The main objectives of vouching are: a
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As a public company, LJB Company will be held accountable and responsible for certain internal controls as established by the Sarbanes-Oxley Act. These controls involve all aspects of operations, finances and personnel. The SOX internal control standards apply to all public companies listed on the U.S. exchanges- New York Stock Exchange and NASDAQ. Internal controls consist of methods and measures utilized by a company to ensure their assets are protected; there is a structured reliability in their
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audit procedures applied and the testing performed have provided sufficient competent evidential matter to afford a reasonable basis for an opinion. b. The work has been adequately planned and supervised. c. A sufficient understanding of the internal control structure had been obtained to plan the audit and to determine the nature, timing and extent of tests to be performed. d. Basis in choosing the members of the audit engagement team. 3. When planning an audit, which of the following is not
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Case #3.4 – Sunbeam – Incentives and Pressure to Commit Fraud I. Technical Audit Guidance To maximize the knowledge acquired by students, this book has been designed to be read in conjunction with the post-Sarbanes-Oxley technical audit guidance. All of the post-Sarbanes-Oxley technical guidance is available for free at http://www.pcaobus.org/Standards/index.aspx. In addition, a summary of the Sarbanes-Oxley Act of 2002 is also available for free at http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/Sarbanes-Oxley+–+The+Basics
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Internal control is a system of procedures and cross checking that in the absence of collusion minimizes the likelihood of misappropriation of assets or misstatement of the accounts, and maximizes the likelihood of detection if this occurs. For the most part, internal control does not prevent embezzlement but should insure that, if committed, it will be promptly discovered, and the identity of the perpetrator known. This likelihood of discovery usually persuades most not to allow temptation to
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Acknowledgements I am thankful to our ‘Honorable Instructor’ Mr. A. H. Lutful Hassan, Deputy Director, P&D Adjunct Faculty, school of business of Independent University, Bangladesh. He provided me valuable assistance in preparing this assignment. I am deeply grateful to him, that he constructs this course to render exposure of Auditing as well as the basic functioning of such. The course builds on the capacity developed in the principle of accounting practice basic concepts and apply them
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assist with the process of payroll, inventory, accounts receivable and payables along with the daily sales. The current AIS that have been implemented will address the systems integrity and the new system will help KFF to ensure that the data is accurate and reliable for the preparation of the financial statements for the organization. Now that the new accounting information system has been set up it is now time to perform an audit of KFF internal controls. In order to do this we will take a look at
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