Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded?
The billing department supervisor matches prenumbered shipping documents
with entries in the sales journal.
Which of the following internal control procedures would most likely assure that all billed sales are correctly posted to the accounts receivable ledger?
Which of the following internal control procedures would most likely assure that all billed sales are correctly posted to the accounts receivable ledger?
Daily sales summaries are compared to daily postings
to the accounts receivable ledger.
Which internal control is intended to ensure?
Internal controls are intended to
prevent errors and irregularities
, identify problems and ensure that corrective action is taken.
What are the 4 internal controls?
Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data;
(3) securing compliance with the policies of the organization
; and (4) evaluating the …
What are examples of internal control activities?
Examples of these activities include
reconciliations, authorizations, approval processes, performance reviews, and verification processes
. An integral part of the control activity component is segregation of duties. However, in very small governmental units, such segregation may not be practical.
Which of the following is a reason to establish internal control?
The primary purpose of internal controls is
to help safeguard an organization and further its objectives
. Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
Which of the following most likely would be the result of ineffective internal control?
Terms in this set (8) answer: final authorization of credit memos by personnel in the sales department could permit an employee defalcation scheme. The most likely result of ineffective internal control policies and procedures in the revenue cycle is that: answer:
shipments to customers were invoiced.
What are the 9 common internal controls?
Here are controls:
Strong tone at the top
; Leadership communicates importance of quality; Accounts reconciled monthly; Leaders review financial results; Log-in credentials; Limits on check signing; Physical access to cash, Inventory; Invoices marked paid to avoid double payment; and, Payroll reviewed by leaders.
What are the 5 internal controls?
- Control environment. The foundation of internal controls is the tone of your business at management level. …
- Risk assessment. Risk assessment is the evaluation of your business flow and exposure to risk. …
- Control activities. …
- Information and communication. …
- Monitoring.
What are the 7 internal control procedures?
The seven internal control procedures are
separation of duties, access controls, physical audits, standardized documentation, trial balances, periodic reconciliations, and approval authority
.
What are the 3 types of internal controls?
- There are three main types of internal controls: detective, preventative, and corrective. …
- All organizations are subject to threats occurring that unfavorably impact the organization and affect asset loss.
What is an effective internal control system?
An effective internal control system provides
reasonable assurance that policies, processes, tasks, behaviours and other aspects of an organisation
, taken together, facilitate its effective and efficient operation, help to ensure the quality of internal and external reporting, and help to ensure compliance with …
What are key internal controls?
Internal controls are
the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information
, promote accountability and prevent fraud.
What are the five main objectives of internal control?
- Efficient conduct of business: …
- Safeguarding assets: …
- Preventing and detecting fraud and other unlawful acts: …
- Completeness and accuracy of financial records: …
- Timely preparation of financial statements: …
- Figure 1: Categories of controls.
What are the different forms of internal control?
Overview. There are two basic categories of internal controls –
preventive and detective
. An effective internal control system will have both types, as each serves a different purpose.
What is internal control checklist?
The Internal Control Checklist is
a tool for the campus community to help evaluate and strengthen internal controls
, promote effective and efficient business practices, and improve compliance in a department or functional unit.
