Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Which of the following is a poor internal accounting control feature?

Requiring two signatures on checks above a certain amount

Segregating duties among different employees

Allowing the same employee to both authorize and record transactions

Performing regular independent bank reconciliations

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Verified step by step guidance

Understand the concept of internal accounting controls: Internal accounting controls are procedures and policies implemented by a company to ensure the accuracy and reliability of financial reporting, safeguard assets, and prevent fraud.

Analyze each option provided in the problem: Evaluate whether each feature contributes to strong internal controls or represents a weakness in the system.

Option 1: Requiring two signatures on checks above a certain amount - This is a strong internal control feature as it prevents unauthorized disbursements and ensures oversight.

Option 2: Segregating duties among different employees - This is another strong internal control feature as it reduces the risk of fraud or errors by ensuring no single employee has control over all aspects of a financial transaction.

Option 3: Allowing the same employee to both authorize and record transactions - This is a poor internal control feature because it creates an opportunity for fraud or errors without detection. Strong internal controls require separation of duties to mitigate risks.