1216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Answer all questions Email address * abhaykumar02@gmail.com Name * Abhay kumar Email * Abhaykumar02 @gmail.com Register number * 1931003001002 hitpsfidocs. google. comformsll ThuANWGXyagz5 tbWS318VWeqn201SzY OlymRWioG ti/edir?ve-08c=08w=1Bfr-OBgxids=7526#response= wt‘212000 ‘SRW IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHMY8408 Degree: B.Sc Batch: @* Os Oc Oo CHOOSE THE CORRECT ANSWER Internal controls are grouped into the following categories: * 1 point Efficient operations financial analysis and management reporting Production and operations, financial reporting, and management reporting Effective operations, financial reporting, and compliance. Oo0@0 Efficient operations, financial analysis, and compliance. Which of the following makes for an effective control environment with regards to 1 point commitment to competence? * © increase interaction between senior management and operating management. © tts culture is one in which quality and competence are openly valued. © Reduce pressure to meet unrealistic performance targets. © Assure independence from management, hitpstidocs.qoogle.comiformsil ThuANwGXyagz5 tbW5918VyWsqn201Sz¥OlymRWioQiedi:?vc=08c=08W=18fr=O8grd 2n71216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Which of the following is the accounting equation for a non-profit organization? * 1 point © Asset = Capital + Liabilities © capital + Liabilities = Assets. © Accumulated fund + Liabilities = Assets. CO Labilties = Asset + Accumulated fund Control activities can be defined as: * 1 point © The particular category in which a control is placed, O The actions of people to help ensure that management directives necessary to address risks are carried out © Armeans to an end © Authorized procedures The departmental accounting enables a business firm to maximize * 1 point © profit O losses. hitpsidocs.google.comformse! ThuANWGXyagz5 1BWSSIBVyWsqn201Sz¥OlymRWioO1i8led’?ve=O8c=08W=18ir-OBgrids=7628Hresponse=... 3/71216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 The business policies and the administration of a branch are wholly controlled by the 1 point head office the type of branch is a © independent branch. © dependent branch. © local branch © none of the above Which of the following is responsible for establishing a private company's internal 1 point control? * © Management © Auditors. © Management and auditors. © Committee of Sponsoring Organizations. Which of the following is not one of the three primary objectives of effective internal 1 point control * © Reliability of financial reporting CO Efficiency and effectiveness of operations © Compliance with laws and regulations: © Assurance of elimination of business risk hitpsiidocs google. comforms! ThuANwGXyagz5 1bWSSIBVyWsqn201Sz¥OlymRWioO1i8/edt?vc=08c=08w=18i=0Bgxids=7628Hresponse=... 4/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 When the auditor attempts to understand the operation of the accounting system by 1 point tracing a few transactions through the accounting system, the auditor is said to be * © tracing vouching. performing a walk-through. Oooo testing controls. Branches not keeping a full system of accounting are 1 point © Foreign branch. © local branch © independent branch. © dependent branch. Under the branch accounts, debtors system, the depreciation of an asset is 1 point shown on credit side of branch account. not shown in branch account shown on the debit side of the branch account. Oo@00 show in debtors account. hitps/ldocs. google. comforms!ThuANWGXyagz5 1BWSSIBVyWsqn201Sz¥OlymRWioO1i8ledi’?ve=O8c=08w=18ir=OBgrids=7628Hresponse=... 5/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 To determine a positive control environment, the auditor should consider which of the 1 point following control environment actions for integrity and ethical values? * Create formal or informal job descriptions or other means of defining tasks that comprise particular jobs. Remove incentives and temptations that prompt personnel to engage in fraudulent or unethical behaviour. Encourage independence from management. Review the nature of business risk accepted. 00 0 © Branch accounts debtors system, loading on goods sent to branch adjusted in 1 point © Debit side. O credit side. © asset side. © liabilities side. Under branch accounts debtors system, closing balance of liabilities are recorded in + point first credit and debit side. first debit and credit side. credit side. 000 @6 debit side. hitpsiidocs. google. comformsi! ThuANwGXyagz5 1bWSSIBVyWsqn201Sz¥OlymRWioO1i8/edt?vc=O8c=08W=18f=0Bgrids=7628Hresponse=... 6/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 The basis for decision making by the management is * 1 point © Accounting statements © Financial Statement © Bank statements © None of the above The combination of Selling Expenses and Administrative Expenses is referred to as* 1 point © General Expenses © Operating Expenses © Total Expenses Gross Profit minus Operating Expenses is best defined as * 1 point © Net income © Net Sales © Operating Income hitpstidocs.qoogle.comiformsil ThuANwGXyagz5 tbW5918VyWsqn201Sz¥OlymRWioQiedi:?vc=08c=08W=18fr=O8grd 771216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 The act of buying an asset without having to make full payment in the immediate 1 point future is known as: * © Sale and leaseback © Operating lease © Finance lease O Hire purchase Departments are located in * 1 point next city same place outside state Oo@00 ina foreign country Which of management's concerns with respect to implementing internal controls is 1 point the auditor primarily concerned? * © Efficiency of operations. © Reliability of financial reporting CO Effectiveness of operations. © Compliance with applicable laws and regulations. hitpsidocs. google. comformse! ThuANWGXyagz5 1BWSSIBVyWsqn201Sz¥OlymRWioO1i8ledl’?ve=O8c=08w=18ir=OBgrids=7628Hresponse=... 8/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Departmental Accounting refers to maintaining accounts for one or more branches or 1 point departments of the company. * Non-departmental expenses are charged to the General Profit and Loss Account. * 1 point @ TRUE © False Repairs to Machinery are allocated, to different departments on the b&is of the 1 point number of machines in each department. * © Te O False A flow chart, made by the auditor, of an entity's internal control system is a graphic + point representation that depicts the auditor's understanding of the system * hitpsiidocs google. comformsi! ThuANwGXyagz5 1bWSSIBVyWsqn201Sz¥OlymRWioO1i8/eit?vc=08c=08w=18f=0Bgxids=7628Hresponse=... 9/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Two key concepts that underlie the management's design and implementation of 1 point internal control are costs and materiality. * © Te ©@ False Internal controls can never be considered as absolutely effective because their 1 point effectiveness is limited by the competency and dependability of employees. * ‘A major control available in a small company, which might not be feasible in a big 1 point company, is wider segregation of duties. * @® Tre © False Management is responsible for establishing internal controls for a public company. * 1 point hitpsiidocs google. comformsi! ThuANwGXyagz5 1bWSSIBVyWsqn201Sz¥OlymRWioOti8/eit?vc=O8c=08w=18il=0Bgrids=7628Hresponse.... 10/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 An act of two or more employees to steal assets or misstate records is frequently 1 point referred to as collusion. * Departmental accounting is of calculating for various departments at different 1 point location * The initial presumption in the audit of a public company is that control risk is low. * 1 point When auditing a private company, the auditor should obtain an understanding of 1 point internal control sufficient to provide reasonable protection against client fraud and defalcations by client employees. * hitpsiidocs google. comformse! ThuANwGXyagz5 1bWSSIBVyWsqn201Sz¥OlymRWioO1i8/edt?vc=08c=08W=18f=0Bgxids=7628Hresponse.... 11/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 The auditor's study of a public company's internal control is required by GAAS. * 1 point The essence of an effectively controlled organization lies in the effectiveness of its 1 point independent auditor. * Monitoring activities deal with ongoing or periodic assessment of the quality of 1 point internal control by management. * @ Tne © False A statement of affairs is just like a ” 1 point balance sheet. profit and loss account. cash account, Oo@00 None of the above hitpsiidocs google. comformsi! ThuANwGXyagz5 1bWSSIBVyWsqn201Sz¥OlymRWioO1i8/edt?vc=08c=08W=18i=0Bgrids=7628Hresponse.... 12/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Tests of control are not concerned with, * 1 point Existence of controls Continuity of controls Designing of controls Oo0@°0 Effectiveness of controls Under the branch accounts, debtors system, the closing balance of assets are 1 point recorded in * First debit and credit side. first credit and debit side. debit side. OO@°0 credit side. The difference between goods sent by the head office and received by the branch is 1 point known as * © Goods in transit. © Goods in godown. © Goods in production © None of the above. hitpsidocs.google.comformse! ThuANWGXyagz5 1BWSSIBVyWsqn201Sz¥OlymRWioOti8ledi’?ve=O8c=08w=18ir-ORgrids=7628#response.... 19/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 is not an inherent limitation of internal control system. * 1 point © Management override © Collusion among employees © Inefficiency of internal auditor © Abuse of authority The primary purpose of performing tests of control is to provide reasonable 1 point assurance that © there are no material misstatements due to fraud or error in financial statement. accounting system is well documented Written evidence is there to support transactions if internal control is effective Oooo Departmental Accounting is a vital one for___ prosperous business organizations. * 1 point O large ©@ small hitpstidocs.qoogle.comiformsil ThuANwGXyagz5 tbW5918VyWsqn201Sz¥OlymRWioQiedi:?vc=08c=08W=18fr=O8grd 28Hresponse... 14/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Tests of control are not concerned with, * 1 point © 1. Existence of controls © 2. Effectiveness of controls © 3. Continuity of controls © 4. Designing of controls The sequence of steps in the auditor's consideration of internal control is as follows 1 point @© Lbtain an understanding, design substantive test, perform tests of control, make a preliminary assessment ofcontrol risk © Design substantive tests, obtain an understancing, perform tests of control make a preliminary assessment ofcontrol risk CO ital an understanding, make a preliminary assessment of contol ak, perform teats of control designsubstantive © Perform tests of control, obtain and understanding, make a preliminary assessment of control risk, design The performance of tests of control is documented in1. 2. 3. working papers4, any of 1 point the above * ©@ flow charts © working papers © audit programme © any of the above hitpstidocs.qoogle.comiformsil ThuANwGXyagz5 tbW5918VyWsqn201Sz¥OlymRWioQiedi:?vc=08c=08W=18fr=O8grd 28ttesponse. asi71216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 Control risk is assessed at. * 1 point Overall financial statements level Fraud risk factor level Financial statement assertion level O00 © Control environment level The primary purpose of performing tests of control is to provide reasonable 1 point assurance that. ‘there are no material misstatements due to fraud or error in financial statement accounting system is well documented Written evidence is there to support transactions @ooo0 if internal control is effective If the auditor assesses control risk as high, * 1 point © Document the conclusions © documents the reasons along with conclusions CO perform tests of control © perform walkthrough tests hitpsiidocs google. comormsi ThuANwGXyagz5 1bWS3IBVyWsqn201Sz¥OlymRWi tise? c= 08 W= 1-08 28response.... 16/171216/2020 ‘SRM IHM CYCLE TEST-2 HOTEL ACCOUNTANCY BHM18406 The overall attitude and awareness of an entity's board of directors concerning the 1 point importance of internal control are reflected in __ . accounting controls, control environment. control procedures Oo0@0 supervision Proper segregation of duties reduces the opportunities in which a person would 1 point both, * establish controls and executes them records cash receipts and cash payments: perpetuate errors and frauds and conceals them OO0@°0 record the transaction in journal This content is neither created nor endorsed by Google wr hitps/idocs. google. comformsi thuANwGXyagz5 1bWS3IBVyWsqn201Sz¥OlymRWi ti8/eit?ve=08e=D8W=18fk=08gxi