Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Question
Chapter 4, Problem 25BE
To determine
Introduction:
Internal control play a very important roles in the organization because rule go beyond the concept of traditional and safe guarding the corporate assets. Internal control also provides the regulatory compliance and enforcing corporate policies. Internal audit is also in the internal
To choose:
Discuss if internal control are important and the potential consequence of an internal control failure.
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Students have asked these similar questions
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.
Instruction: Briefly answer the following questions: 4-5 SENTENCES ONLY EVERY question
1 .An important element of the control environment is the organization’s commitment to ethics and integrity. How might an internal auditor assess the organization’s commitment to ethics and integrity?
2. How might management and internal auditors assess each one of the following?
The independence and competence of the board of directors
The competence of accounting personnel
Whether company employees are adhering to the company’s code of conduct
3.What is monitoring? Identify the two major types of monitoring and explain how they could be used by management.
I.Ongoing Evaluation
II.Separate Evaluations
PLEASE NO PLAGIARISM. I WILL GIVE UPVOTES AND COMMENTS. THANKS!
Chapter 10
Accounting Information Systems
Short Problem 10-3, page 394: Using the following table as a guide, describe for each function from Figure 10.1:
A risk (an event or action that will cause the organization to fail to meet its goals/objectives)
A control/process or use of technology that will address the risk.
Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
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- Describe the impact that entity-level controls (i.e., control environment, pervasive controls, and general/IT general controls) can have on the effectiveness of purchasing business process controls.arrow_forwardMatch the following elements of internal control: Question 4 options: information and communication control environment risk assessment monitoring control procedures 1. provides reasonable assurance that business goals will be achieved 2. used by management for guiding operations and ensuring compliance with requirements 3. overall attitude of management and employees 4. used to locate weaknesses and improve controls 5. identify, analyze and assess likeliness of vulnerabilitiesarrow_forwardWhat three things form a business’ organization structure? Question 9 options: 1) Its management, its physical location, and its reporting relationships 2) Its management bureaucracy, its reporting relationships, and its geographical location of the home office 3) Its informal culture, its formal structure, and its management control mechanisms 4) Its formal division into subunits, coordinating mechanisms, and locus of decision-making responsibilityarrow_forward
- 4 . The quality of an entity’s internal control affects not only the reliability of its financial data, but also the ability of the entity to make good decisions and remain in business. Required:Identify and discuss three (3) characteristics of satisfactory internal control.arrow_forwardQuestion 9 To test the reasonableness of the turnaround time of the applicable business process review, what tool can be used by the internal auditor? Group of answer choices Forcefield analysis Control sheets Check sheets Time and motion studyarrow_forwardProblem 6: Planning the audit is essential for a. obtaining sufficient, appropriate evidence b. keeping costs reasonable to the client c. avoiding a misunderstanding with a client. Elaborate on each step below for the auditor’s objective in achieving the above essential elements. Discuss in detail what each step consists of and give an example for each. Accept the client and perform initial audit planning Understand the client's business and industry Assess client business risk Perform preliminary analytical procedures Set materiality levels and assess acceptable audit risk and inherent risk Understand internal control and assess control risk Gather information to assess fraud risks Develop overall audit plan and programarrow_forward
- Question 29 The most important fundamental component of an entity's internal control is: Effectiveness of operations. People who operate and function within the control system. Reliability of financial reporting. Compliance with applicable laws and regulations.arrow_forward6. Management accountant heavily depends on internal financial controls like_______ to plug loopholes in the financial system of the concern. a. Internal Check b. Internal Audit c. Internal Control d. All the given optionsarrow_forwards1: An adequate internal control ensures the substantial accuracy of various managerial reports, financial and statistical in nature. s2: A system of internal control extends beyond those matters which relate directly to the functions of the accounting and financial departments. s3: Safeguarding the assets of the company Is the primary objective of internal control. A. all statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are truearrow_forward
- 21 Internal Control goes beyond accounting function and incorporates both accounting and administrative control. From the following alternatives identify which one is not a part of administrative control? a. Self-balancing ledger b. Motion Studies c. Quality control d. Time studiesarrow_forwardHow will systems documentation differ between business processes that employ an enterprise system and those that do not?arrow_forwardWhat steps are commonly included in a business continuity planning methodology?arrow_forward
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