Session:8 Fraud, Internal Controls, and Cash

Questions

Principles of Accounting, Volume 1: Financial Accounting | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-financial-accounting

1. 8.1 What is an example of perceived opportunity as one of the three elements causing a person to commit
fraud?
2. 8.1 What is an example of rationalization as one of the three elements causing a person to commit
fraud?
3. 8.1 What is an example of incentive as one of the three elements causing a person to commit fraud?
4. 8.2 Why is it important to have a very sound and well-developed internal control structure?
5. 8.2 The information technology departments of all companies have significant and important roles in the
internal control systems. Discuss them and their importance.
6. 8.2 What are the functions of the internal control?
7. 8.3 Discuss the importance of a company having proper insurance and bonding its employees.
8. 8.4 What is the role of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board?
9. 8.4 Why is it important to have a petty cash fund available in a company?
10. 8.3 8.4 Is it required to have only one petty cashier or should the company appoint more than one
person to administer the fund? Why?
11. 8.5 Technology can be used to support a strong internal control system. Discuss how technology has
improved the point-of-sale transactions.
564 Chapter 8 Fraud, Internal Controls, and Cash
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
12. 8.6 What is the purpose of the bank reconciliation?
13. 8.6 What should be done if differences are found between the bank statement and the book account?