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Alternative summarised version of tests of controls
· Segregation of duty (staff records are separate from wages department)
· Documentation (written evidence)
· Authorisation(by senior personnel)
· Review(by senior personnel of other staff work)
Remember no control is fool proof. Humans are careless, misunderstand, distracted easily and make mistakes. Collusion may always happen to override controls and responsibility given could always be abused.
• Prepare a Trend Analysis for the Balance Sheet, Income Statement and Cash Flow Statement • This should include about 12 accounts in the Balance Sheet and about 10 Income Statemen
fimnancial accounting system
Accountants should not reverse the adjustment of prepaid insurance to recognize insurance expense at the end of the accounting period because: Answer a. . doing so results in
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(a) Find the nominal rate of interest j compounded quarterly which is equivalent to a 5% e ective rate of interest. (b) Which one will deliver a higher future value on a deposit
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