Situation A: In the following set of situations, you must identify…
Question Answered step-by-step Situation A: In the following set of situations, you must identify… Situation A: In the following set of situations, you must identify each of them within one of the elements of an internal controls structure. The elements of the structure of internal controls are: Control Environmental – Using Letter E Risk Assessment – Using Letter R Control Activities – Using Letter A Information and Communications – Using Letter I Monitoring – Using Letter M 1. The internal auditors periodically evaluate the controls in the various departments of the Wal-Mart Co. 2. Wal-Mart Co’s managements compares actual performances with budgets and forecasts. 3. The accounting department in Wal-Mart Co. uses a manual of accounting policies and procedures for prepare the financial statements. 4. Wal-Mart human resources department investigates the educational background of prospective employees. 5. The CEO and CFO of Wal-Mart Co. weekly check the fluctuation of shares in the stock market. 6. Authorizes personnel are the only to access the warehouse including security personnel. 7. Management surveys customers about their satisfaction with the company’s service. 8. Management periodically evaluates the threats to preparing reliable financial statements.9. The auditors uses their understanding of the client’s information system to identify material misstatement. 10. The chart of accounts of Wal-Mart Co. is a classified listing of all accounts in use. 11. Check the cash balance by asking the manager of the Popular Bank Inc. where the company maintains its cash accounts. 12. Review of the cash received from the clients of the audited company against the cash transactions in the general journal. 13. Making calls to suppliers to check the balance of the invoices related to the accounts payable of Wal-Mart Co. 14. Review of trial balances adjusted balance of the company that is being audited. 15. Meeting with the members of the board of directors of Wal-Mart Co. to identify the latest changes in products that the company has offered to its consumers. Business Accounting ACCT 423 Share QuestionEmailCopy link Comments (0)
