Your answer is correct.
Match each situation with the fraud triangle factor (opportunity, financial pressure, or
rationalization) that best describes it.
(a) An employee’s monthly credit card payments are nearly 75% o
...
Your answer is correct.
Match each situation with the fraud triangle factor (opportunity, financial pressure, or
rationalization) that best describes it.
(a) An employee’s monthly credit card payments are nearly 75% of
their monthly earnings.
Financial
Pressure
(b) An employee earns minimum wage at a firm that has reported
record earnings for each of the last five years.
Rationalizatio
n
(c) An employee has an expensive gambling habit. Financial
Pressure
(d) An employee has check writing and signing responsibilities for a
small company, and is also responsible for reconciling the bank
account.
Opportunity
Your answer is correct.
The internal control procedures in Edmiston Company make the following
provisions.
Identify the principles of internal control that are being followed in each
case.
(a) Employees who have physical custody of assets
do not have access to the accounting records.
Segregation of Duties
(b) Each month, the assets on hand are compared
to the accounting records by an internal auditor.
Independent Internal
Verification
(c) A prenumbered shipping document is prepared
for each shipment of goods to customers.
Documentation
Procedures
Your answer is correct.
Halleran Company has the following internal control procedures over cash receipts.
Identify the internal control principle that is applicable to each procedure.
(a) All over-the-counter receipts are entered in cash registers. Physical
controls
(b) All cashiers are bonded. Human
resource
controls
(c) Daily cash counts are made by cashier department supervisors
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