会计学原理23版 英文版手册WildFAP23eCh08SM05390576.pdfVIP

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 8 Chapter 8 Cash, Fraud, and Internal Controls QUESTIONS 1. The seven broad principles are: Establish responsibilities; Maintain adequate records; Insure assets and bond key employees; Separate recordkeeping from custody of assets; Divide responsibilities for related transactions; Apply technology controls; Perform regular and independent reviews. 2. Internal control procedures become especially critical when the manager of a business can no longer control the business through personal supervision and direct participation. 3. Responsibility for related transactions should be divided so that the work of one department or individual acts as a check on that of another. 4. Separation of custody from recordkeeping of an asset encourages the asset custodian to avoid misplacing, misappropriating, or wasting the asset. This arrangement makes collusion necessary if an asset is to be stolen and the theft concealed in the records. 5. If individual departments were permitted to deal directly with suppliers, the amount of merchandise purchased and the resulting liabilities would not be well controlled. Having individual departments place orders through a purchasing department helps control the amounts purchased and the resulting liabilities. 6. The limitations of internal control arise from two sources: the human element (human error or human fraud) and the cost-benefit principle. 7. Cash is most liquid; and least liquid is a building. The four assets ordered from most to least liquid are: cash, accounts receivable, inventory, and building. 8. A petty cash receipt is a document stating that a payment has been made from petty cash. The one who received payment and the one