BE7‑6
Ndon Company has the following internal control procedures over cash
disbursements. Identify the internal control principle that is applicable to
each procedure. Company checks are prenumbered. The bank statement is
reconciled monthly by an internal auditor. Blank checks are stored in a safe in
the treasurer’s office. Only the treasurer or assistant treasurer may sign
checks.
Check
signers are not allowed to record cash disbursement transactions.
Identify
the internal control principles applicable to cash disbursements. (SO 4),
BE7‑9Using
the data in BE7-8, indicate (a) the items that will result in an adjustment to
the depositor’s records and (b) why the other items do not require adjustment.
Identify
reconciling items that require adjusting entries (SO
5), C
File name: BE7-6 BE7-9 Ndon comp.doc File type: doc PRICE: $5
