Cia Part I - Su 3.3 Accounting Cycle And Associated Controls

Front 1

What should a properly designed control system do?

Back 1

reduce the risk of errors and prevent fraud

Front 2

Which three functions should be performed by separate individuals in different parts of the organization for any given transaction?

Back 2

1) authorization of the transaction
2) recording of the transaction
3) custody of the assets

ARC

Front 3

What kind of fraud is the internal control system designed to detect?

Back 3

fraud committed by a single person only

Front 4

Which responsibilities should the VP of Operations assume?

Back 4

1) sales
2) purchasing
3) warehouse
4) receiving
5) shipping
6) production

Front 5

Which responsibilities should the Chief Accounting Officer (Controller) assume?

Back 5

1) accounts receivables
2) billing
3) accounts payable
4) general ledger
5) inventory control
6) cost accounting
7) payroll

Front 6

Which responsibilities should the Chief Financial Officer (Treasurer) assume?

Back 6

1) Cash receipts
2) Cash disbursements
3) Credit

Front 7

Which responsibilities should the VP of Administration assume?

Back 7

Mail Room

Front 8

Which responsibilities should the VP of Human Resources assume?

Back 8

Human resources

Front 9

In which five cycles can the accounting process be described?

Back 9

1) sales to customers on credit and recognition of receivables
2) collection of cash form customer receivables
3) purchases on credit and recognition of payables
4) payment of cash to satisfy trade payables
5) payment of employees and allocation of costs