Question

C. Why is it important for companies to analyze revenue and accounts receivable? How can these...

C. Why is it important for companies to analyze revenue and accounts receivable? How can these areas lend themselves to fraud when left with lack of segregation of duties, weak controls and record keeping delays?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

A revenue control and management policy establises proper conrol over all receipts and receivable and helps ensure sound financial management practices. Government adopts a revenue control and management policy over revenues as a component of their overall financial policies.

Revenue control policy

  • Segregation of duties such as initiation and authorizaton of transactions, execution of transaction, recording transactions, reconcilement and maintaining custody
  • Daily processing and timely deposit as receipt
  • timely reconcilation of applicable ledgers
  • Physical security procedures
  • Fraud reporting procedures
  • use of integrated receipt and accounting system whereever practical cost effective.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why is it important for companies to analyze revenue and accounts receivable? How can these areas...
Why is it important for companies to analyze revenue and accounts receivable? How can these areas lend themselves to fraud when left with lack of segregation of duties, weak controls and recordkeeping delays?
Cash conversion cycle Cash management is a very important function of managers. Companies need to manage...
Cash conversion cycle Cash management is a very important function of managers. Companies need to manage their operations in a way that they can sustain growth and yet not run out of cash. Consider the case of the Loud Noise Recordings Corporation: Loud Noise Recordings Corporation has forecasted sales of $27,000,000 for next year and expects its cost of goods sold (COGS) to remain at 70% of sales. Currently, the firm holds $3,200,000 in inventories, $1,900,000 in accounts receivable, and...
48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63...
48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 QUESTION 1 All of the following are management’s objectives in designing effective internal controls over financial reporting (ICFR) except for ______________ ? a. Comply with section 404 of the Sarabanes Oxley (SOX) act. b. Producing accurate and complete financial statements and other reports to make operational decisions. c. Ensure reliability of financial reporting d. Management review of the year-end financial statements to ensure proper...
Q3. a. How does a company can dispose of its accounts receivable through factoring? Assume that...
Q3. a. How does a company can dispose of its accounts receivable through factoring? Assume that Hendredon Furniture factors $600,000 of receivables to Federal Factors on Nov. 15. Federal Factors assesses a service charge of 2% of the amount of receivables sold. Show the journal entry to record the sale. b. Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr 1 Beginning inventory 500 $2.40 Apr 20 Purchase 400 $2.50 Dunbar sold 700...
The Fraud Triangle LO 5-2 Explain the components of the Fraud Triangle. Donald R. Cressey, a...
The Fraud Triangle LO 5-2 Explain the components of the Fraud Triangle. Donald R. Cressey, a noted criminologist, is mostly credited with coming up with the concept of a Fraud Triangle. Albrecht points out that, while researching his doctoral thesis in the 1950s, Cressey developed a hypothesis of why people commit fraud. He found that trusted persons become trust violators when they conceive of themselves as having a financial problem that is nonsharable, are aware that this problem can be...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor confidence and damaged the reputation of companies large and small. The Sarbanes-Oxley Act (SOX) of 2002 was enacted in response to the high-profile Enron and World Com financial scandals to protect shareholders and the public from accounting errors and fraudulent practices by organizations. One primary component of the SOX is the definition of which records are to be stored and for how long. For...
The welfare loss from monopoly can be seen from the difference in equilibrium between a. marginal...
The welfare loss from monopoly can be seen from the difference in equilibrium between a. marginal revenue and marginal benefit. b. marginal cost and marginal benefit. c. supply and demand. Which of the following is not a reasonable argument for government involvement in education? a. Education has some public good aspects, especially in a democracy. b. Education is a merit good. c. Education is more efficiently produced by government. d. Public provision of education has desirable distributional consequences. A mixed...
Post-Closing Trial Balance December 31, 2018 Debit Credit Cash      18,200 Accounts receivable        3,960 Supplies        1,380
Post-Closing Trial Balance December 31, 2018 Debit Credit Cash      18,200 Accounts receivable        3,960 Supplies        1,380 Prepaid insurance           750 Prepaid rent        3,800 Furniture        5,000 Accumulated depreciation, furniture           450 Equipment        8,000 Accumulated depreciation, equipment        4,000 Accounts payable        2,700 Accrued liabilities           190 Unearned service revenue        1,900 Common shares      20,000 Retained earnings      11,850 Total      41,090      41,090 PREPARE JOURNAL ENTRIES (+ADJUSTING ONES IF NEEDED) Business Activities for January, 2019 On January 4, 2019, Linda paid the outstanding accounts payable balance from December 31, 2018. On...
Reflect back on your draft. Reread it. Analyze it. What are the strengths of your draft?...
Reflect back on your draft. Reread it. Analyze it. What are the strengths of your draft? What areas will need improvement? The Treatment of Special Needs Children Abstract            Special needs children are still on the receiving end of abuse despite the increased clamor against their mistreatment. Also, they are likely to face discrimination and abuse in their homes and their social spheres; they have limited opportunities for quality education and can find trouble getting adequate medical assistance. The management of...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the new accounting period. All real accounts are closed but not the nominal accounts. All balance sheet accounts are closed. All temporary accounts are closed but not the permanent accounts. All permanent accounts are closed but not the nominal accounts. 4.A wholesaler is an intermediary that buys products from manufacturers or other wholesalers and sells them to consumers.Immersive Reader (1 Point) True False 5.The Merchandise...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT