1. Narrative notes: narrative notes are probably the most adaptable means of recording but they have the disadvantages that they can be cumbersome to use, they are difficult to interpret and review and they are awkward to change. It is also difficult to identify if any part of the system has been omitted plus of course the difficulty associated with reading other peoples illegible hand writing. This method is therefore appropriate to small businesses or to an overall record of systems in large companies.
2. Use of internal control questionnaires: In our review of the various cycles we identified measures that an organization can take to prevent and detect errors and irregularities. These measures represent desirable controls than can exist in a system. Now internal control questionnaires are pre-printed documents asking specific questions about the existence of desirable controls in the system. The way they are framed is such that the questions can be answered in a `yes’ and `no’ manner. A `no’ answer implying a weakness in control or a lack of control. `Yes’ answers indicate strength. Internal control questionnaires help to ensure that all basic control points are considered and in the context of control evaluation they can be extremely useful but they are not efficient as a means of recording an accounting system because just like narrative notes they can become very cluttered hence becoming difficult to interpret.
3. Flow-charts: a flow chart is a diagrammatic representation of the flow of documents through an accounting system with every check or control recorded on the lines of flow and segregation of duties highlighted. This method of recording ensures as far as possible the completeness of recording because a missed stage would result in a flow line simply stopping in the middle of a page. It eliminates the need for lengthy narrative, it is easy to understand and extract the salient points of control and any related weaknesses. In addition, if the format is standardised then assimilation is made easier. The method however does not facilitate the recording of physical, personnel, supervision or management controls which are usually best contained in narrative notes. A flow-chart is widely regarded as an important tool in the evaluation of systems. It is primarily designed to reveal the absence of essential accounting controls therefore time should not be spent on recording details which are irrelevant to this purpose. Preparing flow-charts is time consuming and for a professional firm expensive to prepare. Consideration must always therefore be given to their cost effectiveness. In most situations it is not appropriate to prepare flow-charts at all. All these techniques can be used at the same time and are therefore not mutually exclusive.
Judiesiz answered the question on August 16, 2018 at 19:51
- Outline the advantages of the imprest system as a system to maintain for cash payments.(Solved)
Outline the advantages of the imprest system as a system to maintain for cash payments.
Date posted: August 16, 2018. Answers (1)
- Which are traditional classifications of operation for internal control purposes?(Solved)
Which are traditional classifications of operation for internal control purposes?
Date posted: August 16, 2018. Answers (1)
- Which are traditional classifications of operation for internal control purposes?
(Solved)
Which are traditional classifications of operation for internal control purposes?
Date posted: August 15, 2018. Answers (1)
-
Discuss various types of internal control in auditing.(Solved)
Discuss various types of internal control in auditing.
Date posted: August 15, 2018. Answers (1)
- What are the responsibilities of a project manager?(Solved)
What are the responsibilities of a project manager?
Date posted: August 7, 2018. Answers (1)
- Outline the characteristics of project management process(Solved)
Outline the characteristics of project management process.
Date posted: August 7, 2018. Answers (1)
- A researcher undertook a study to show how social background influences academic achievement. He considered a population of 600 people whose composition was; 90 professionals,...(Solved)
A researcher undertook a study to show how social background influences academic achievement. He considered a population of 600 people whose composition was; 90 professionals, 115 managers, 150 skilled workers, 120 unskilled workers and 125 businessmen.
REQUIRED
What would be the most suitable sampling method for the study and why? (3mks)
Date posted: July 18, 2018. Answers (1)
- Outline five advantages of innovation in Kenya's banking sector(Solved)
Outline five advantages of innovation in Kenya's banking sector.
Date posted: July 12, 2018. Answers (1)
- Outline the limitations of deficit financing.
(Solved)
Outline the limitations of deficit financing.
Date posted: July 10, 2018. Answers (1)
- Outline the objectives of fiscal policy in developing countries.
(Solved)
Outline the objectives of fiscal policy in developing countries.
Date posted: July 10, 2018. Answers (1)
- Outline the rules of functional finance(Solved)
Outline the rules of functional finance
Date posted: July 10, 2018. Answers (1)
- What are the likely consequences of public deficit?(Solved)
What are the likely consequences of public deficit?
Date posted: July 10, 2018. Answers (1)
- Outline the objectives of the budget.(Solved)
Outline the objectives of the budget.
Date posted: July 10, 2018. Answers (1)
-
What are the features of a budget?(Solved)
What are the features of a budget?
Date posted: July 10, 2018. Answers (1)
- Explain the methods of repayment of debt.
(Solved)
Explain the methods of repayment of debt.
Date posted: July 10, 2018. Answers (1)
-
What are advantages of debt redemption?(Solved)
What are advantages of debt redemption?
Date posted: July 10, 2018. Answers (1)
- What are the classifications of public debt?
(Solved)
What are the classifications of public debt?
Date posted: July 10, 2018. Answers (1)
- Why is public debt incurred?(Solved)
Why is public debt incurred?
Date posted: July 10, 2018. Answers (1)
- Explain briefly the purposes of taxes.
(Solved)
Explain briefly the purposes of taxes.
Date posted: July 10, 2018. Answers (1)
- State and explain the different kinds of taxes in Kenya(Solved)
State and explain the different kinds of taxes in Kenya.
Date posted: July 10, 2018. Answers (1)