What are at least four important internal control procedures?
Student answers may vary but can include:
1 . Proper authorizations
2 . Segregation of duties
3 . Independent verification
4 . Safeguarding of assets and records
5 . Independent review and appraisal
6 . Design and use of business documents
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During the current year being audited, Hitech, Inc. changed from a conventional payroll punch clock to a computerized payroll time system. Factory employees now record time in and out with magnetic cards and the IT system automatically updates all payroll records. Because of this change:
A. the potential for payroll related fraud has been diminished. B. without paper clock cards, part of the audit trail has been altered. C. internal control has improved. D. the auditor must audit through the computer.
The indirect method of reporting
a. is preferred by the Financial Accounting Standards Board (FASB), Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows." b. shows a reconciliation between net income and cash flow from operations either at the bottom of the statement of cash flows or in a separate note. c. reports the amounts of cash received from customers less cash disbursed to various suppliers, employees, lenders for interest payments, and taxing authorities. d. reports the net income for a period and then adjusts the net income to convert revenues to cash received from customers and to convert expenses to cash disbursed to various suppliers of goods and services. e. includes all of the above.
Erika has found that getting up early enough to have a real breakfast, instead of grabbing something from the vending machine at work, has made her more productive and less stressed. Erika is managing stress through ______.
A. time management B. relaxation C. nutrition D. exercise
A very important part of the salary administration program is the policies and procedures under which the program operates
Indicate whether the statement is true or false.