Reference no: EM131284742
Controls are put in place to minimize risks so that organization's can achieve their objectives. Objectives are typically identified as operations, reporting and compliance. What in general are operational, reporting and compliance objectives?
The adequacy of internal controls is said to be a function of the organization's "control environment". Describe what is meant by the "control environment".
Jack Company is a large retail company that sells clothing, shoes, and other apparel. It has 40 retail outlets located in 22 states. All of its merchandise is purchased by a centralized
Procurement Organization located at the company's headquarters in Vermont. There are six purchasing agents with each agent assigned to purchase various types of goods. Each agent works independently with suppliers to get the best deals for the company. The six agents report to a purchasing manager. The manger oversees the department and among other things, approves purchase orders for more than 1,000,0000 Otherwise, each agent is able to do his/her own deals. Based on the above, answer the following:
What is the difference between a preventive control and a detective control?
How would a preventive control be applicable to the activities in the Procurement Organization? How would a detective control be applicable?
How are any excess amounts treated
: Tom made a charitable contribution to his church in the current year. He donated common stock valued at $20,000 (acquired as an investment in 1998 for $8,000). Tom's AGI in the current year is $50,000. a. What is his allowable charitable contribution..
|
What is her deductible transportation expense
: During the year 2015, Ricki, who is not self-employed and does not receive employer reimbursement for business expenses, drove her car 1,000 miles to visit clients, 2,000 miles to get to her office, and 100 miles to attend business-related seminars. ..
|
Firm needs to plow back its earnings to fuel growth
: Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per share annual dividend 10 years from..
|
Effect on profit between cash flow hedge-fair value hedge
: Read Derivative Accounting Loopholes Inflate Profit.doc and suggest how to change the current hedge accounting so as to close the loopholes. Tip: Identify a differential effect on profit between cash flow hedge and fair value hedge.
|
Difference between preventive control and detective control
: Controls are put in place to minimize risks so that organization's can achieve their objectives. Objectives are typically identified as operations, reporting and compliance. What in general are operational, reporting and compliance objectives? What i..
|
What is meant by the terms gross risk and residual risk
: Don Company is in the precious metals business. A significant part of Don's success has been its willingness to develop gold and silver mines in parts of the world where it is particularly risky to do business. What is meant by the terms gross risk a..
|
Periodic inventory system and employs average cost method
: The following information is taken from the inventory records of the Britain Company: Assume that Britain Company uses a periodic inventory system and employs the average cost method, determine cost of goods sold for April and April’s ending inventor..
|
Assuming that in addition to the assurance warranty
: On January 2, 2017, Grando Company sells production equipment to Fargo Inc. for $50,000. Grando includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2017. Repe..
|
Services traditionally provided by the government employees
: Recently, several states have outsourced some of the services traditionally provided by the government employees. In one state, the department of health and human services(Department) has outsourced its electronic benefit transfer services to eFunds,..
|