Thus,
compliance with laws and regulations
is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.
Which of the following is an element of internal control?
the five elements of internal control are the
control environment, risk assessment, control procedures, monitoring, and information and communication
.
Which one of the following is not an element of internal control?
Thus,
compliance with laws and regulations
is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.
Which of the following is not an internal control activity?
Answer: Option A)
the functions of cash record keeping and cash custody should be combined
is not an internal control activity for cash. Explanation: Internal control activity for cash are the procedures which are taken by a firm to prevent losses from the accounting errors or due to the fraud by the firm's employees.
Which of the following should be considered cash?
Cash includes
legal tender, bills, coins, checks received but not deposited
, and checking and savings accounts.
What are the five elements of internal control?
Determining whether a particular internal control system is effective is a judgement resulting from an assessment of whether the five components –
Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring
– are present and functioning.
How does Coso define internal control?
COSO defines internal control as “
a
.
process, effected by an entity's board of directors, management, and other personnel, designed to provide
.
reasonable assurance regarding the achievement
.
What is the most important internal control element?
One of the most important control activities is
segregation of duties
. Different individuals should be responsible for authorizing transactions, recording transactions, having custody of assets, and performing comparisons/reconciliations.
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 two features of internal control?
An internal control system guards against manager and employee fraud at a company, and includes a focus on
management integrity, employee competence, records-keeping, discrete duties, and other system safeguards
.
What are internal controls concerned with?
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.
What is not an example of internal control?
Internal control: Internal control is a process which ensures continuous reliability of accomplishment, of a company's objectives, related to operations, financial reporting, and in conformity with laws and regulations. … Hence,
depositing cash weekly
is not an example of internal control system.
Which of the following is an internal control procedure for cash disbursements?
Which of the following is an internal control procedure for cash disbursements?
Disbursements should be made by check
.
What are the four internal control measures for cash?
- Record cash receipts when received.
- Keep funds secured.
- Document transfers.
- Give receipts to each customer.
- Don't share passwords.
- Give each cashier a separate cash drawer.
- Supervisors verify cash deposits.
- Supervisors approve all voided refunded transactions.
How are accounts receivable days collected?
How is days to collect accounts receivable determined? …
365 days divided by accounts receivable turnover
.
What is bank reconciliation quizlet?
Bank Reconciliation. –
process of verifying the accuracy of both the bank statement and cash accounts of a business
. -should be completed at end of each month. Common Causes of Differences Between the Ending Bank Balance and Ending Book Balance of Cash.
