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Understanding internal control, components, procedures, and laws Match the following terms with their definitions.

Answer ASAP Which of the following BEST describes a Step-up practice related to Effective Audit and Risk Management - Risk Management and Internal Control Framework? a. The board establishes a Risk Management Committee, which comprises a majority of independent directors, to oversee the company risk management framework and policies. b. The board should determine the company level of risk tolerance and actively identify, assess and monitor key business risks to safeguard shareholder investments and the company assets. Internal controls are important for risk management and the board should be committed to articulating, implementing and reviewing the company’s internal control framework. c. Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives. The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company objectives is mitigated and…

Chester Company has established internal control policies and procedures in order to achieve the following objectives: 1) Effective evaluation of management performance. 2) Assure that the accounting records contain reliable information. 3) Safeguard the company's assets. 4) Assure that employees comply with company policy. Which of these objectives are achieved by accounting controls? Multiple Choice All four objectives Objectives 3 and 4 Objectives 1 and 2 Objectives 2 and 3

The internal control system provides reasonable assurance that the company’s objectives are being met in all of the following areas EXCEPT which one? effectiveness and efficiency of the company’s operations reliability of financial reporting consolidation of departments within the accounting function compliance with applicable laws and regulations

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

Question 27 When completing the audit of internal controls for a public company the PCAOB requires auditors to audit internal controls over:     Operations     Compliance with regulations     Financial Reporting     All of the answers shown

_______ comprises of the plan of the organization and all the co-ordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data to promote operational efficiency and to encourage adherence to prescribed managerial policies. a. Internal Control b. Internal Audit c. Audit Plan d. Risk Assessment

Match the items with the related statements that follow.

Defining internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records. Requirements 1. Which objective do you think is most important? 2. Which objective do you think the internal controls must accomplish for the business to survive? Give your reason.

Question 16 When completing the audit of internal controls for a public company, the PCAOB requires auditors to audit internal controls over:     Operations     Compliance with regulations     Financial Reporting     All of the answers provided

Corporate Governance and its Impact on Managerial Auditing Practices   Step 1: Understanding Corporate Governance   Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships among various stakeholders, including shareholders, management, board of directors, employees, and other parties with an interest in the company's performance and conduct.   Step 2: Importance of Corporate Governance   Ensuring Accountability: Effective corporate governance promotes transparency and accountability, ensuring that management and the board of directors act in the best interests of shareholders and other stakeholders.   Risk Management: Corporate governance frameworks help identify and mitigate risks, ensuring that appropriate controls and procedures are in place to safeguard assets and prevent fraud or misconduct.   Enhancing Investor Confidence: Strong corporate governance practices enhance…

Identify the primary parties involved in preparing and auditing financial statements, and briefly describe their roles.  Use the illustration below to help you answer the question.

Which of the following statements is correct? A.The external auditor is responsible for the preperation of a company's financial statements. B.Audit commitees are now compulsory for the top 500 companies C.An audit commitee may be responsible for reviewing policies on internal control procedures D.Corporate governance can provide assurances that management is accountable for the actions

Question: In corporate governance, what is the primary function of an audit committee? A) Financial statement preparation B) Internal control evaluation C) Marketing strategy development D) Employee training and development

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An organization’s internal audit department isusually considered an effective control mechanism for evaluating the organization’s internalcontrol structure. The Birch Company’s internalauditing function reports directly to the controller. Comment on the effectiveness of this organizational structure

Match each of the following components of internal control with its description. Components of Internal Control Descriptions 1. Control environment 2. Risk assessment 3. Control activities 4. Information and communication 5. Monitoring a. Procedures for maintaining separation ofduties.b. Routine activities that are meant tocontinually observe internal controlactivities.c. Transfer of data from lower managersto top executives for accurate financialreporting.d. Formal policies to evaluate internal andexternal threats to achieving companyobjectives.e. Overall attitude of the company withrespect to internal controls.

E1B. Match the items with the related statements that follow. a. Control environment b. Risk assessment c. Control activities d. Information and communication e. Monitoring 1. The company has an internal audit department. 2. Management encourages employees to follow the rules. 3. Management regularly considers what losses the company might face. 4. Management puts separation of duties in place. 5. The company gathers appropriate information and communicates it to employees. 6. Personnel instructed in their duties. 7. The company employs good physical controls. are well trained and 8. Managers are observant and review how procedures by those who report to them are carried out. 9. The company has a good accounting system.

Auditor conducts management interview as a part of evaluation of internal control a. To understand the mindset of business owners and other managers in the company b. To understand whether the employees are satisfied or not c. To understand the opinion of employees about the management d. To understand the opinion of employees about the company

S8-1 Definition of internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency and ensure accurate records. Which objective is most important? Which must the internal controls accomplish for the business to survive? Give your reasons.

What term is used to describe broadly to the manner in which an organization is governed or managed and it encompasses the framework of rules, relationships, systems, and processes designed to exercise authority and control within a company?  A.  Management controlB.  Corporate governanceC.  Internal auditingD.  Government regulation

Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall internal control of a company, the auditor first needs to consider the elements of the control environment. To assist the auditor in assessing the level of control risk, the following tests of controls were designed to allow the auditor to determine if the company’s related controls were operating effectively in the revenue cycle.         Determine which of the four management assertion(s) apply to each individual sales (revenue) control being discussed. Hint: many have more than one assertion. Management Assertions: Existence & Occurrence, Rights, Completeness, Valuation    8. Monthly statements are mailed to customers. Which management assertions apply to this control?                                9. The computer assigns a number to every delivery receipt. Which management assertions apply to this control?                            10. All sales returns are approved by the vice…

Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall internal control of a company, the auditor first needs to consider the elements of the control environment. To assist the auditor in assessing the level of control risk, the following tests of controls were designed to allow the auditor to determine if the company’s related controls were operating effectively in the revenue cycle.         Determine which of the four management assertion(s) apply to each individual sales (revenue) control being discussed. Hint: many have more than one assertion. Management Assertions: Existence & Occurrence, Rights, Completeness, Valuation    6. Input validation checks (application controls) are applied to every bill to ensure the accuracy of the billing process.Which management assertions apply to this control?