Answered: How an internal control system helps…

How an internal control system helps the management in conduct of their business affairs? Give a answer please. detailed and outlined/structured

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 2DQ

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How an internal control system helps the management in conduct of their business affairs? Give a
answer please.
detailed and outlined/structured

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Step 1: An Internal control system

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Step 2: Benefits of Understanding of Internal Control Limitations of Internal Control

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Step 3: Components of Internal Control

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What are some activities and tasks a manager might perform when engaging in the controlling function of management responsibilities?
Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.
Which one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.
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External users of accounting information would include ________________. employees managers investors supervisors
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