AC410 Unit 5 Assignment
10–27. Henry Mills is responsible for preparing checks, recording cash disbursements, and preparing bank reconciliations for Signet Corporation. While reconciling the October bank statement, Mills noticed that several checks totaling $937 had been outstanding for more than one year. Concluding that these checks would never be presented for payments, Mills prepared a check for $937 payable to himself, forged the treasurer’s signature, and cashed the check. Mills made no entry in the accounts for this disbursement and attempted to conceal the theft by destroying the forged check and omitting the long-outstanding checks from subsequent bank reconciliations.
10–44. Following are typical questions that might appear on an internal control questionnaire for
investments in marketable securities
11–42. The following are typical questions that might appear on an internal control questionnaire for accounts receivable:
1. Are sales invoices checked for proper pricing, terms, and clerical accuracy?
2. Are shipping documents pre-numbered and all numbers accounted for?
3. Is customer credit approval obtained from the credit department prior to shipment of goods?
a. Describe the purpose of each of the above controls.