Chapter 7 – Internal Controls • Key topics: • Know the broad definition of internal control and its purposes, including the objective that is particularly relevant to an audit (i.e. reliability of financial reporting) A process, effected by the entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations (effective and efficient operations), reporting (accurate financial reporting) and
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misstatement due to fraud. 2. An auditor should design the written audit program so that a. All material transactions will be selected for substantive testing. b. Substantive tests prior to the balance sheet date will be minimized. c. The audit procedures selected will achieve specific audit objectives. d. Each account balance will be tested under either tests of controls or tests of transactions. 3. Which of the following fraudulent activities most likely could be perpetrated due to the lack
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had a 38.1% increase in interest income of $1600 displaying a strength respectively. The company’s earnings before income taxes had tripled since year 6 with an impressive increase of 313.4%. Provisions for income taxes and net earnings both experienced the same increase of 313.4% from year 6 to 7. The company experienced a 16.3% decline in gross profit from year 7 to 8. The gross profit reflects the company’s residual income after it has sold its products and deducted the cost to produce their products
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internal control Qver Financial Reporting CASES INCLUDED iN THIS SECTiON 1. Simply Steam, Co. 155 Evaluation of Internal Control Environment 2. Easy Clean, Co. 155 Evaluation of Internal Control Environment 3. Red Bluff Inn & Café 165 Establishing Effective Internal Control in a Small Business 4. St. James Clothiers 169 Evaluation of Manual and IT-Based Sales Accounting System Risks 5. Collins Harp Enterprises 177 Recommending IT Systems Development
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due to fraud. 2. An auditor should design the written audit program so that a. All material transactions will be selected for substantive testing. b. Substantive tests prior to the balance sheet date will be minimized. c. The audit procedures selected will achieve specific audit objectives. d. Each account balance will be tested under either tests of controls or tests of transactions. 3. Which of the following fraudulent activities most likely could be perpetrated due to the lack
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diXESSE ! The ESSENTIAL ACCOUNTING DICTIONARY SPHINX DICTIONARIES es·sen·tial. ADJ. Of the utmost importance. • The most comprehensive pocket-size dictionary • Easy-to-understand definitions • Written by a leading authority in the field Wit Kate Mooney Accoun ting T and Phra erms ses 300O h MORE TH AN The ESSENTIAL ACCOUNTING DICTIONARY es·sen·tial ADJ. Of the utmost importance. The ESSENTIAL ACCOUNTING DICTIONARY es·sen·tial ADJ. Of the utmost importance
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Advantages & Disadvantages of Divisional Organizational Structure X Chris Joseph is a freelance writer residing in Pennsylvania. He has written hundreds of articles for newspapers and the Internet on a variety of topics, including several on golf for GolfLink.com. He holds a Bachelor of Science degree in marketing from York College of Pennsylvania. By Chris Joseph, eHow Contributor updated: January 18, 2011 Large companies that serve a varied customer base or operate in a number of geographic
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Table of Contents |Topic |Page No. | |Executive Summary |3 | |Introduction |4 | |History |5
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A Framework for IT Governance in Small Businesses by Herman Koornhof A FRAMEWORK FOR IT G O V E R N A N C E by IN SMALL BUSINESSES Herman Koornhof TREATISE Submitted for the partial fulfilment of the requirements for the degree MAGISTER TECHNOLOGIAE in Business Information Systems in the FACULTY ENGINEERING, BUILT ENVIRONMENT OF THE AND INFORMATION TECHNOLOGY of the N E L S O N M A N D E L A M E T R O P O L I T A N U N I V E R SI T Y Supervisor: Prof
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Systems Thinking and Change Management Evaluation Systems thinking is a process that incorporates the crucial elements of strategic planning, management and leadership development, team building, and other principles of organizational change in the effort to create positive change within an organization. The first component of this discussion evaluates systems thinking and the application and limitations of systems logic as essential considerations in managerial decision making. Systems thinking
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