“Effective Internal Control and Audit Procedures for Financial Investments and Accounts Receivable”

Week 3 – Discussions 1
Prior to beginning work on this discussion forum, read
Chapters 10 and 11 in the course textbook.
Since financial investments are assets with a high degree
of inherent risk, companies must establish effective internal control over
their investments. Address the following in your discussion post:
·       
Describe segregation of
duties and dual control.
·       
Describe the functions
that should be segregated to provide good internal control over cash, the
receipt of cash, and financial investments.
·       
Describe two other
internal control policies that should be established for financial investments.
·       
List three audit tasks
related to the audit of financial investments that may require specialized
skill or knowledge.
Write: Make sure your response is more than
200 words and that you include an in-text citation or a brief quote from the
reading material where appropriate. You may find the Writing Center’s APA: Citing Within Your PaperLinks to an external site. resource helpful in
citing your sources.
Week 3 – Discussions 2
Prior to beginning work on this discussion forum, read
Chapters 10 and 11 in the course textbook.
Confirmation of accounts receivable is presumptively a
mandatory audit procedure. In performing this procedure, auditors use positive
confirmation requests or negative confirmation requests or a combination of
both. Address the following in your discussion post:
·       
Explain the difference
between negative and positive confirmations.
·       
Describe conditions
which should exist for the auditors to use the negative form of request.
·       
Describe conditions
which should exist for the auditors to use the positive form of request.
·       
If a response is not
received to an initial positive or negative confirmation request, describe the
action that should be taken by the auditors, including a discussion of
alternative auditing procedures.
Write: Make sure your response is more than
200 words and that you include an in-text citation or a brief quote from the
reading material where appropriate. You may find the Writing Center’s APA: Citing Within Your PaperLinks to an external site. resource helpful in
citing your sources.