FinAcctg7SMCh04Word格式.docx

FinAcctg7SMCh04Word格式.docx

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Studentresponsesmayvary.

（5-10min.）S4-4

ElectronicDevice

ObjectiveofInternalControl

1.Electronicsensorfor

1.Safeguardassets

merchandise

2.Barcodes

1.Promoteoperationalefficiency

2.Ensureaccurateaccounting

records

3.Surveillancecameras

2.Encourageemployeesto

followcompanypolicy

（10min.）S4-5

ReitmeierCorp.

BankReconciliation

August31,20XX

BANK

BOOKS

Balance,August31

$3,405

$2,500

Add:

Depositintransit

500

Bankcollection

550

3,905

Interestrevenue

10

3,060

Less:

Servicecharge

（20）

Outstandingchecks

（900）

NSFcheck

（35）

Adjustedbankbalance

$3,005

Adjustedbookbalance

Reitmeierhascashof$3,005.

（5min.）S4-6

Aug.

31

Cash………………………………………..

550

AccountsReceivable………………...

Collectiononaccount.

10

InterestRevenue……………………...

Interestearnedonbankbalance.

MiscellaneousExpense………………...

20

Cash…………………………………….

Bankservicecharge.

AccountsReceivable……………………

35

Cash……………………………………..

NSFcheck.

（5min.）S4-7

Itappearsthattheemployeehasstolen$1,000（adjustedbookbalance,$3,600−adjustedbankbalance,$2,600）.Theadjustedbankbalanceisthecompany’struecashbalance,andthecompanybooksshowmorecashonhand.Therefore,thebooksmustbeincorrect.

（5min.）S4-8

McCormickwillnoticeagapinthesequenceofsalesreceiptsforthereceiptthatCastillodestroyed.ThisknowledgewillleadMcCormicktoinvestigatewhathappenedtothemissingreceiptandwhathappenedtotherelatedcash.

（10min.）S4-9

1.Payingbycheckcarriesthreecontrolsovercash:

∙Thecheckprovidesarecordofthepayment.

∙Thecheckmustbesignedbyanauthorizedofficial.

∙Beforesigningthecheck,theofficialshouldstudytheevidencesupportingthepayment.

2.Adishonestpurchasingagentcould:

∙Purchasegoodsandhavethemdeliveredtohishomeorotherlocationthathecontrols.

∙Approvepaymentbythecompanyforgoodsthathespenttoomuchon,andthensplittheexcesswiththesupplier.

Companiesavoidthisinternalcontrolweaknessbyseparatingthefollowingdutiesrelatedtothepurchaseof,andpaymentfor,goods:

∙purchasinggoods

∙receivinggoods

∙approvingandpayingforgoods

（5min.）S4-10

Acashbudgetstartswiththebeginningcashbalance,addsbudgetedcashreceipts,andsubtractsbudgetedcashpayments.Theresultiscashavailableattheendoftheperiod.Bycomparingcashavailabletoourbudgetedcashbalance,wecanseewhetherwehavecashavailableforadditionalinvestments,orifwe’llneednewfinancing.

（5-10min.）S4-11

CaliforniaArtichokeGrowers

CashBudget

Year2008

Millions

Cashbalance,beginning

$4

Estimatedcashreceipts—total

97

101

Estimatedcashpayments—total

（95）

Cashavailable（needed）beforenewfinancing

6

Budgetedcashbalanceneeded

（5）

Cashavailableforadditionalinvestments

$1

（5min.）S4-12

FordshouldreporttheerrorstoMcGregorbecauseMcGregorisFord’ssupervisor,andMcGregorisresponsiblefortheerrors.IfMcGregorfailstotakeaction,thenFordshouldreporttheerrorstothemanageroftheorganization.Inanyevent,outsiderswhoarerelyingonYellowP’sfinancialstatementsmustbemadeawareoftheneedtocorrectthereportednetincomefigure.

Exercises

（10min.）E4-13

Acomputervirusentersprogramcodewithoutyourconsentandperformsdestructiveactiontoyourcomputerfilesorprograms.

ATrojanHorseisamaliciouscomputerprogramthathidesinsidealegitimateprogramandworkslikeavirustocorruptyourcomputerfilesorprograms.

AphishingexpeditioncanbeaWebsitethatattractsvisitorswhomaybetrickedintorevealingtheiraccountnumbers,socialsecuritynumbers,passwords,orothervaluabledata.ThecreatoroftheWebsitethenusestheunsuspectingWeb-sitevisitors’datatostealfromthemandforotherillicitpurposes.

（20-30min.）E4-14

a.Separationofdutieslimitsthechancesforfraud（lossofassets）andalsopromotestheaccuracyoftheaccountingrecords.Thisallowsmanagerstorelyontheaccountingrecordstoproduceinformationusefulforoperatingthebusiness.

b.Cashisimportantnotbecauseofitsamountasreportedonthebalancesheet,butbecauseofitseffectonabusiness.Alltransactionsultimatelyaffectcash.Businessespurchaseassetsandmustpaycash.Theymakesalesandcollectcash.Allexpensesultimatelyrequirecash.Also,cashissusceptibletotheftbecauseitisamediumofexchange.Thesefactorscombinetogivecashmoreimportancethanitsaccountbalancewouldsuggest.

c.Punchingaholethroughsupportingdocumentsreducestheopportunityforfraud.Withoutthiscontrolprocedure,adishonestemployeecouldresubmitdocumentsforpaymentasecondtime.Theemployeecouldchangethepayee’saddressandhavethechecksenttoanaddresstheemployeecontrols.Ortheemployeecouldarrangetohavethesecondpayeesplitthepaymentwiththeemployee.Cancelingthedocumentsmakesitdifficulttogetapprovalforaduplicatepayment.

（5-20min.）E4-15

a.Millerhasaccesstothecashcollected,andhealsopreparesthecashreport.Withaccesstobothitems,Millercanstealcashandfalsifyhiscashreporttoconcealhistheft.

b.Fisherpreparesthepurchasingorderandalsoreceivesthegoods.Shecanaddsomeitemstothepurchaseorderandhavetheseextraitemsshippedtoalocationshecontrols.Whenthegoodscomein,shecheckstheincomingshipment,sothere’snooutsidepartytolearnofherdishonesty.

c.Anexternalauditnormallyincludesanexaminationoftheclient’sfinancialstatementsandtheunderlyingtransactions.Withnoexaminationoftheseimportantitems,theauditormayreachthewrongconclusionaboutMattson’sfinancialstatements.PeoplewholentmoneytoMattsonorboughtMattsonstockmaymakeunwisedecisionsintheirdealingswithMattsonandlosemoneyasaresult.

（10min.）E4-16

Cashpayments:

a.Stronginternalcontrol.Thereisagoodseparationofduties.Supervisorsrequestequipment,andthehomeofficepurchasestheequipment.

b.Weakinternalcontrol.Supervisorsbothrequest,purchase,andpayforequipmentwithlittleoversightbythehomeoffice.

Cashreceipts:

a.Weakinternalcontrol.Theaccountantbothhandlescashandaccountsforcash.

b.Stronginternalcontrol.Thereisagoodseparationofduties.Differentpeoplehandlecashandaccountforcash.

（10min.）E4-17

TopreventMoore’sembezzlement,DowntownFlint’sboardofdirectorscouldhave:

a.NotpermittedMooretowriteDowntownFlintChecks.Instead,appointaboardmembertowritethechecks.

b.NotpermittedMooretoreceivecashthatcametoDowntownFlint.Havecashsenttoalockboxatthebankandappointaboardmembertogetthecashfromthelockbox.

c.SupervisedMoore’sworkbyexaminingDowntownFlintdocumentssuchaspaidchecks.

d.HadanauditofDowntownFlinttransactionsandfinancialstatements.

（5-10min.）E4-18

1.b5.d

2.b6.c

3.d7.c

4.a

（10-20min.）E4-19

LeAnnBryant

November30,20X6

BANK:

Balance,November30

$604

Add:

Depositintransit

846

Less:

Outstandingchecks:

CheckNo.

626

$25

627

275

（300）

Adjustedbankbalance

$1,150

BOOKS:

$1,197

Correctionofbookerror—

Recorded$85checkas$58

$27

8

12

（47）

Adjustedbookbalance

（10-20min.）E4-20

TimVanWinkle

May31,20XX

Balance,May31

$595

1,788

2,383

（603）

$1,780

$1,882

EFTcollection—rent

300

2,182

$12