毕晓方改编+《财务会计》的课后习题答案第五章习题答案

1、5-1As an internal auditor, you would probably disagree with the change in policy. First Charter has some normal business risk associated with default on bank loans. One way to help minimize this is to carefully evaluate loan applications. Large loans present greater risk in the event of default than

2、 do smaller loans. Thus, it is reasonable to have more than one person involved in making the decision to grant a large loan. In addition, loans should be granted on their merits, not on the basis of favoritism or mere association with the bank president. Allowing the bank president to have sole aut

3、hority to grant large loans can lead to the president granting loans to friends and business associates, without the required due diligence. This can result in a bank becoming exposed to very poor credit risks. Indeed, this scenario is one of the causes of savings and loan and bank failures of the p

4、ast.5-2This is an example of a fraud with significant collusion. Frauds that are perpetrated with multiple parties in different positions of control make detecting fraud more difficult. In this case, the fraud began with an employee responsible for authorizing claim payments. This is a sensitive pos

5、ition because his decisions would initiate payments. However, claims would need to be authorized and verified before payment would be made. Knowing this, the employee made sure each claim had a phony “victim.” Thus, there was a verifiable story behind each claim. Only by tracking physical evidence o

6、f the accident could it be discovered that the claim was fictitious. However, the very nature of the process was to resolve small claims quickly without excessive control. Lastly, corrupt lawyers were brought into the fraud to act as attorneys for the claimants. This gave the claims even more credib

7、ility. In actuality, the lawyers had done legitimate business with the trucking company, so all appeared normal. This fraud was discovered when the fraudulent employees bank noticed irregularities in his bank account and notified authorities. As the saying goes, “Follow the money!” As a side note, t

8、he corrupt claims administrator fell into this behavior due to gambling problems.5-3Event Sound should not have relied on the unusual nature of the vendors and delivery frequency to uncover this fraud. The purchase and payment cycle is one of the most critical business cycles to control, because the

9、 potential for abuse is so great. Purchases should be initiated by a requisition document. This document should be countersigned by a superior so that two people agree as to what is being purchased. The requisition should initiate a purchase order to a vendor for goods or services. The vendor respon

10、ds to the purchase order by delivering the goods. The goods should be formally received using a receiving document. An accounts payable clerk matches the requisition, purchase order, and invoice before any payment is made. Such “triple matching” prevents unauthorized requests and payments. In this c

11、ase, the requests were unauthorized, suggesting that the employee had sole authority to make a request. Second, this employee had access to the invoices. This access allowed the employee to change critical characteristics of the invoice to hide the true nature of the goods being received. The invoic

12、e should have been delivered directly to the accounts payable clerk to avoid corrupting the document. There apparently was no receiving document (common for smaller companies); thus, only the invoice provided proof of what was received and to be paid. If there had been a receiving report, the invoic

13、e could not have been doctored and gone undetected, because it would not have matched the receiving report.Note to Instructors: This exercise is based on an actual fraud.5-4a.The most difficult frauds to detect are those that involve the senior management of a company that is in a conspiracy to comm

14、it the fraud. The senior managers have the power to access many parts of the accounting system, while the normal separation of duties is subverted by involving many people in the fraud. In addition, the authorization control is subverted because most of the authorization power resides in the senior

15、management.b.Overall, this type of fraud can be stopped if there is strong oversight of senior management, such as an audit committee of the board of directors. Individual “whistle blowers” in the company can make their concerns known to the independent or internal auditors who, in turn, can inform

16、the audit committee. The audit committee should be independent of management and have the power to monitor the actions of management.5-51.General ledger accounts: (e)2.Subsidiary ledger accounts: (a), (b), (c), (d)5-6a.Cash receipts journalb.Cash receipts journalc.General journal (not a revenue tran

17、saction)d.General journale.Cash receipts journalf.Cash receipts journalg.Cash receipts journalh.Revenue journali.Cash receipts journalj.General journal5-7a.Cash payments journalb.Purchases journalc.Cash payments journald.General journale.General journalf.Cash payments journalg.Purchases journalh.Cas

18、h payments journali.General journalj.General journalk.Purchases journal5-8Nov.3Provided service on account; posted from revenue journal.9Granted allowance or corrected error related to sale of November 3; posted from general journal.13Received cash for balance due; posted from cash receipts journal.

19、5-9REVENUE JOURNALPAGE 8InvoicePost.Accounts Rec. Dr.DateNo.Account DebitedRef.Fees Earned Cr.20061Mar.2512Conrad Co. . 790128513Orlando Co. . 3102312514Drake Inc. . 5803422515Electronic Central, Inc. . 250431Total .1,9305CASH RECEIPTS JOURNALPAGE 12FeesAccts.Post.EarnedRec.CashDateAccount CreditedR

20、ef.Cr.Cr.Dr.20061Mar.4CMI, Inc. . .2402401219Drake Inc. . .5305302327Fees Earned.70.703429Conrad Co. . .7907904531Fees Earned.40.405631Total.1101,5601,67065-101.General ledger account: (c), (e), (h), (j), (k), (l)2.Subsidiary ledger account: (a), (b), (d), (f), (g), (i)3.No posting required: (m)5-11

21、1.General ledger account: (b), (c), (d), (f), (g), (i), (k), (l)2.Subsidiary ledger account: (a), (e), (h)3.No posting required: (j)5-12Feb.6Purchased services, supplies, equipment, or other commodities on account; posted from purchases journal.10Received allowance or corrected error related to purc

22、hase of February 6; posted from general journal.16Paid balance owed; posted from cash payments journal.5-13PAGE 36DATEACCOUNT CREDITEDPOST REF.ACCOUNTS PAYABLE CR.CLEANING SUPPLIES DR.20071May3Industrial Products, Inc. 8585212Carver Paper Products, Inc. 205205317Liquid Klean Supplies 170170420Founta

23、in Laundry Service 70531Total530460ContinuedOTHER ACCOUNTS DR.ACCOUNTPOST REF.AMOUNT123Laundry Service Exp.53704705CASH PAYMENTS JOURNALPAGE 41OtherAccountsCheckPost.AccountsPayableCashDateNo.Account DebitedRef.Dr.Dr.Cr.20071May157 Liquid Klean Supplies . Equipment .18450.450241559 Foun

24、tain Laundry Service .115115452560 Industrial Products, Inc. .8585563161 Salary Expense .512,900.2,9006731Total .3,3503453,69575-14Revenue journal: (d), (i)Cash receipts journal: (a), (e)Purchases journal: (g), (h)Cash payments journal: (b), (f)General journal: (c), (j)5-151.The Cash column is for debits (not credits).2.The Other Accounts column is for credits (not debits).3.A better order of columns would be to place the Other Accounts Cr. column to t