ACC 2O1 MOD 4

Internal control is said to be the backbone of all businesses. Which of the following is the bestdescription of internal controls?A. Internal controls ensure that the financial statements published are correct.B. The only role of internal controls is to protect customer data.C. Internal controls and company policies are important to protect and safeguard assets and to protect allcompany data and are designed to protect the company from fraud.D. Internal controls are designed to keep employees from committing fraud against the company.

Which of the following is true of internal​ control?         A. Internal control procedures tend to diminish the importance of operational efficiency.   B. A​ company's outside auditor is responsible for the​ company's internal control system.   C. Internal controls are only necessary for public companies.   D. One of the major purposes of internal control is to ensure that the assets are safeguarded.

The primary purpose of internal controls in managing a business is to:    A. encourage theft and ensure that segregation of duties does not take place.  B. ensure that employees operating within the scope of their assigned responsibilities and act in the best interest of the business.  C. prevent cash from being stolen.  D. ensure that financial statements are a faithful representation of the company’s financial performance.

Explain one gap the company has in internal control procedures in which fraud or errors could occur? What can the company do to prevent or detect this fraud or error? In your own words, explain the importance of internal control procedures.

What is the primary role of internal controls in managing a business? a.To ensure that the financial statements are presented in such a manner as to provide relevant and reliable information for financial statement decision makers and the company's creditors. b.To constrain subordinates' activities in order to prevent employees from deviating from the scope of their responsibilities and encourage them to act in the best interest of the business. c.To encourage theft and to ensure that segregation of duties does not take place. d.To prevent cash from being stolen.

Shelly Eckert has prepared the following list of statements about internal control. Identify each statement as true or false. Iffalse, indicate how to correct the statement. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and a. unauthorized use. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting b. records. C. No laws require U.S. corporations to maintain an adequate system of internal control. >

A business wishes to establish sound internal controls. What rules and processes can you recommend to help limit human fraud and error?

A company wants to implement good internal control. What are the policies and procedures you can suggest to minimize human frauds and errors?

Which of the following is NOT one of the purposes of internal control? a. to guarantee the success of the business b. to safeguard the entity’s assets and resources c. to deter errors, fraud, and theft d. to ensure the accuracy and completeness of the accounting data

The main purposes of internal controls include all of the following except Multiple Choice prevention of error, theft, and fraud. promotion of efficiency. ensuring compliance with laws and regulations. increase the operating expenses of publicly traded companies.

To guard against fraud and waste, businesses use internal controls. correct or incorrect

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b) enhance the accuracy and reliability of its accounting records. True O False

nternal control does not consist of policies and procedures that Select one: a. Ensure that business information is accurate b. Protect assets from misuse c. Guarantee the company will earn a profit d. Ensure employees and managers comply with laws and regulations

Explain one gap the company has in internal control procedures in which fraud or errors could occur? What can the company do to prevent or detect this fraud or error?

A code of ethics is an important element of a fraud prevention program. Which of the following would diminish the effectiveness of a company’s code of conduct?a. The establishment of a chief ethics officer.b. The establishment of a hotline for reporting unethical behavior.c. The violation of the code of ethics by senior management.d. The posting of the code of ethics in the company workplace.

The objectives of internal control are to a. prevent fraud and promote the social interest of the company Ob. provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with c. control the internal organization of the Accounting Department personnel and equipment d. provide control over "internal-use only" reports and employee internal conduct

a) Internal controls play an important role in reducing the risks of fraudulent activities in any organization. Further, advanced technology helps accountants in reducing fraud. Explain how an advanced technology transaction processing system reduces fraudulent activities from any organizing. b) Refer to the given system flowchart, and we have discussed the control weakness and the risk associated with these control weaknesses. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment. Sales Department Accounting Department Warehouse Shipping Department Slock Release Packing Packing Customer Sales Order Release Packing Customer Order Reconcle Packing sip and Sales order, send Camier Record in Shipping AR Sub Ledge Pick Goods Update Inventory send goods Shipping Bi Customer Approves cred, prepare Update Accounts Inventory Sub ledger Sales documents Shipping Log AR Control Sales Order Stock Release Packing Sip Sales Stock…

Internal controls are critical for any organization's risk of fraudulent activity. Additionally, new technology assists accountants in minimizing fraud. Demonstrate how an advanced technology transaction processing system may help any organization minimize fraudulent activity.

Segregation of Duties (SOD) is a basic building block of sustainable risk management and internal controls for a business. Which of the following statements is not a segregation of duties violation?A. The duties of Internal IT Developer of company is to write application programs and then perform required program maintenance when a problem occurs.B. The payroll administrator is distributing payroll checks to employees and recording cash receipts in the journal under supervision.C. The accounting clerk who recording cash receipts in the journal in the general ledger performs bank reconciliation to compare if there are any differences between cash transactions.D. The inventory warehouse clerk task is to maintain the inventory records with custody of physical assets inventory to manage asset identification, location and condition Explain why you choose your answer, and not the other (in max 200 words)

There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws. True False

Indicate which statements are true and which are false. The primary objective of internal control procedures is to safeguard the business against theft from government agencies.