Auditing question

Segregation of duties is an important concept in internal control. However, segregation of duties is often a challenge for smaller businesses because they do not have sufficient staff to segregate duties. Normally, the segregation of duties identified below results in either a significant deficiency or a material weakness in internal control.

For each “segregation of duties: problem identified here:

a. Identify the risk to financial reporting that is associated with the inadequacy of the segregation of duties.

b. Identify other controls that might mitigate the segregation of duties risks.

c. If a control is identified that would mitigate the risks, briefly indicate what evidence the auditor would need to gather to determine that the control is operating effectively.

Situations

1. The same individual handles cash receipts, the bank reconciliation, and customer complaints.

2. The same person prepares billings to customers and also collects cash receipts and applies them to customer accounts.

3. The person who prepares billings to customers does not handle cash, but does the monthly bank reconciliation, which, in turn, is reviewed by the controller.

4. A start-up company has very few transactions, less than $1 million in revenue each year, and has only one accounting person. The company’s transactions are not complex.

5. The company has one computer person who is responsible for running packaged software. The individual has access to the computer to update software and can also access records.

Expert Answers

Directions: Type your answer below each question. Use complete sentences when applicable.

1 How is electric potential energy similar to gravitational potential energy? How is it different? Where will an electron bound in an atom have the largest electrical potential energy?

2 What is a transformer? Explain how it works.

3 Write at least 4-5 sentences on the different measurements that helped to calculate the speed of light.

4 Three equal-size holes are drilled at the top, middle, and bottom of the side of a barrel filled with water. Describe the path (which is not speed) of water coming from each hole. Explain why water from the bottom hole comes out the fastest.

5 What causes magnetic fields? What happens if you keep breaking a magnet in two until you reach a single atom?

6 What is a motor? Explain its operation

7 State Hooke’s law. A spring will stretch 12 cm when a 250-g mass is hung on it. If two springs are hung side by side and both support the 250-g mass, how much will each spring stretch? Explain.

8 Write 4-5 sentences on beats and how they are produced. Give examples.

9 Why do atoms have relatively the same size even though they may have widely different masses?

10 What is the period of a sound wave whose wavelength is 20.0 m? Show your work.

11 A 60-V potential difference is applied across a parallel combination of a 10-ohm and a 20-ohm resistor. What is the current in the 10-ohm resistor? Show your work.

12 A 30.0-V potential difference is applied across a parallel combination of a 60.0-ohm and a 10.0-ohm resistor. What is the current in the 10.0-ohm resistor? Show your work.

13 What is the power dissipated by a toaster that has a resistance of 60 ohms and is plugged into a 120-V outlet? Show your work.

14 What is the magnitude of the force on an electron in an electric field of 600 N/C? Show your work.

15 A step-up transformer has 250 turns on its primary and 500 turns on its secondary. When the primary is connected to 200 V and the secondary is connected to a floodlight that draws 5 A, what is the power output? Show your work.

16 What is the mass of the air in a room that has dimensions of 10m x 20m x 4 m? Show your work.

17 About how much pressure do the feet of a 6000-kg elephant exert on the ground? Assume each foot has an area of 0.10 square meter. Show your work.

18 The temperature of an object is raised by 90ºC. This is equivalent to what increase in its absolute temperature?

19 A supersonic aircraft produces a shock wave that describes a 30° cone. What happens to the angle of the cone as the aircraft travels faster?

20 A 2.0-ohm resistor is connected in series with a 20.0-V battery and a three-branch parallel network with branches whose resistances are 8.0 ohms each. Ignoring the battery’s internal resistance, what is the current in the battery? Show your work.

Professional University

Professional University teaches a large range of undergraduate courses. It is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it an more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below

Semester Student Credit Hours Facilities Cost
Spring 2007 250,000 $500,000
Fall 2004 300,000 $530,000

Using the high low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?

ABC Plastics

Assignment 2 Supply and Demand Concepts

As an economist for ABC Plastics, your boss has asked you to respond to some questions she has regarding the company’s main product, tablet cases. A marketing research firm recently developed the following supply and demand schedules for tablet cases:

Price/Case       Quantity Demanded        Quantity Supplied

$24                     5000                                 18000

22                       6000                                  17000

20                       7000                                  16000

18                       8000                                  15000

16                      10000                                 14000

14                       11000                                13000

12                       12000                                12000

10                       13000                                 11000

8                         14000                                  10000

6                         15000                                 9000

4                         16000                                 8000

2                          17000                                7000

You are to develop a report addressing the following questions and present your findings to the Board of Directors:

Questions:

1. Construct a graph showing supply and demand in the tablet case market, using Microsoft Excel.

2. How are the laws of supply and demand illustrated in this graph? Explain your answers.

3. What is the equilibrium price and quantity in this market?

4. Assume that the government imposes a price floor of $16 in the tablet case market. What would happen in this market?

5. Assume that the price floor is removed and a price ceiling is imposed at $8. What would happen in this market?

6. Now assume that the price of tablet cases drops by 50%. How would this change impact the demand for tablet cases? Explain your answer and reconstruct the graph developed in question one to show this change.

7. Assume that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

8. Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

9. Explain the difference between a normal good and an inferior good. Would your answers to question #7 change, depending on whether this good is a normal or inferior good? Why or why not? Present your analysis in Microsoft Excel format.

Enter non-numerical responses in the same worksheet using textboxes.