Evaluation of internal control criteria

Assignment Help Financial Accounting

Reference no: EM1314041

Evaluation of internal control criteria.

For each of these five separate cases, identify the principle of internal control that is violated. Recommend what (he business should do to ensure adherence to principles of internal control.

1. Nadine Cox posts all patient charges and payments at the P-Town Medical Clinic. Each night Nadine backs up the computerized accounting system to a tape and stores the tape in a locked file at her desk.

2. Barto Sayles prides himself on hiring quality workers who require little supervision. As office manager, Barto gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work.

3. Desi West's manager has told her to reduce costs. Desi decides to raise the deductible on the plant's property insurance from $5,000 to $10,000. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant's employees is a waste of money since the company has not experienced any losses due to employee theft. Desi saves the entire amount of the bonding insurance premium by dropping (the bonding insurance.)

Reference no: EM1314041

Questions Cloud

Prepare the september 9 entry to establish the fund : Prepare the September 9 entry to establish the fund and (2) the September30 entry to both reimburse the fund and reduce it to $300.

Probability of happening : What is the probability of this actually happening?

Calculation of multiplier when economy equilibrium : What is the expenditure multiplier-explain this briefly? What does it multiply? When an economy is in equilibrium what the size of unplanned inventories is?

Implement better internal controls : Weakness in internal controls and measures to implement better internal controls.

Evaluation of internal control criteria : Evaluation of internal control criteria and For each of these five separate cases, identify the principle of internal control that is violated.

Confidence interval for the iron concentration : Determine a 95 % confidence interval for the iron concentration.

Explaining results by using scientifically recognized form : Write up your results by using scientifically recognized form.

Evaluation of criteria for internal control system : Evaluation of criteria for internal control system and analyzing internal control payments to their respective accounts.

Consumption at equilibrium level of income : Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.

User Account

All Pages