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Principles of Accounting, Volume 1: Financial Accounting

Questions

Principles of Accounting, Volume 1: Financial AccountingQuestions

Questions

1.

LO 8.1What is an example of perceived opportunity as one of the three elements causing a person to commit fraud?

2.

LO 8.1What is an example of rationalization as one of the three elements causing a person to commit fraud?

3.

LO 8.1What is an example of incentive as one of the three elements causing a person to commit fraud?

4.

LO 8.2Why is it important to have a very sound and well-developed internal control structure?

5.

LO 8.2The information technology departments of all companies have significant and important roles in the internal control systems. Discuss them and their importance.

6.

LO 8.2What are the functions of the internal control?

7.

LO 8.4Discuss the importance of a company having proper insurance and bonding its employees.

8.

LO 8.5 What is the role of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board?

9.

LO 8.5 Why is it important to have a petty cash fund available in a company?

10.

LO 8.4 LO 8.5 Is it required to have only one petty cashier or should the company appoint more than one person to administer the fund? Why?

11.

LO 8.3Technology can be used to support a strong internal control system. Discuss how technology has improved the point-of-sale transactions.

12.

LO 8.6What is the purpose of the bank reconciliation?

13.

LO 8.6What should be done if differences are found between the bank statement and the book account?

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