The Sarbanes-Oxley Act increased top management’s responsibility for what?

Why is the Sarbanes-Oxley Act controversial?

The Sarbanes-Oxley Act affects public companies. Requirement

1. How does the Sarbanes-Oxley Act relate to internal controls? Be specific

Advantages and disadvantages of Sarbanes-Oxley act?

Why is a sample used more often than a population?

Samba Corporation operates in an industry with a high collectability issues. Recently, one of Samba’s customers wrote a check for $235 for services performed. Samba’s bank later informed Samba that its customer did not have cash available in his account to cover the$235 charge. As a result, Samba’s bank assesses a $30 fee as the result of the NSF check received. Samba has not yet adjusted its books for the bank fee or the NSF check.

Required:

Record the appropriate journal entry to update Samba’s books.

Engle, a furniture company, made an error in recording a check received from a customer. Last month, Engle’s customer bought a table for $909. Upon receiving the check from the customer, Engel entered the check as an increase of cash of$990.

Required:

Record the appropriate journal entry to correct the error.

Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August, 2019, J.P. Morgan Chase presented Hula with its bank statement as follows:

Upon receiving the bank statement, Hula’s accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and J.P. Morgan Chase’s cash balance:

The correct amount of check 9288 is $770. It was recorded as a cash disbursement of$707 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.

Required:

Prepare a bank reconciliation schedule at August 31, 2019, in proper form.

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) discussed five components of internal control.

Required:

Define and discuss these five components of internal control.

Internal controls play a crucial role in a business.

Required:

Discuss why internal controls are important. What are the potential consequences of an internal control failure?

Basque Inc. maintains a petty cash fund with a balance of $800. On December 31, Basque’s petty cash account has a balance of$60. Basque replenishes the petty cash account, as it does at the end of every month, but also decides to increase the fund balance to $1,000. Basque classifies all petty cash transactions as miscellaneous expense.

Required:

What entry is made to record this activity?

Murphy Inc. maintains a balance of $2,500 in its petty cash fund. On December 31, Murphy’s petty cash account has a balance of$216. Murphy replenishes the petty cash account to bring it back up to $2,500. Murphy classifies all petty cash transactions as miscellaneous expense.

Required:

What entry is made to record the replenishment of the petty cash fund?

Walker Department Store has one cash register. On a recent day, the cash register tape reported sales in the amount of $13,729.87. Actual cash in the register (after deducting and removing the opening change amount of$75) was $13,747.21, which was deposited in the firm’s bank account.

Required:

Prepare a journal entry to record these cash collections.

Describe the basic cash management principles.