Summarize the internal control procedure of maintaining adequate records by selecting the correct answers below. (Check all that apply.) Bonding employees reduces the risk of loss. Dividing responsibility for related transactions reduces the occurrence of recordkeeping errors. Reliable records are a source of information that managers use to monitor activities. Keeping detailed records makes it unlikely that assets are lost or stolen without detection.

Summarize the internal control procedure of maintaining adequate records by selecting the correct answers below. (Check all that apply.) Bonding employees reduces the risk of loss. Dividing responsibility for related transactions reduces the occurrence of recordkeeping errors. Reliable records are a source of information that managers use to monitor activities. Keeping detailed records makes it unlikely that assets are lost or stolen without detection.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter14: Auditing It Controls Part I: Sarbanes-oxley And It Governance

Section: Chapter Questions

Problem 2MCQ

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The impact of weak internal controls can affect an employee’s fraud behavior. The role of information technology (IT) controls facilitate and help detect fraud. Design a method from the accounting information system (AIS) readings to help eliminate such employee fraud activity. Chapter 3 in your textbook discusses the need for a code of ethics and internal controls.
A good fraud prevention program should address employees’ motivation to steal from the company. The best method for doing this is toa. Establish employee assistance programs.b. Require a fidelity bond on all employees.c. Require reconciliations of all accounts to be reviewed by a supervisor.d. Ensure that all accounts with high inherent risk of fraud are audited.
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A business wishes to establish sound internal controls. What rules and processes can you recommend to help limit human fraud and error?
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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 activitiesfrom any organizing.
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