Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Question

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Answer 1

Question

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.

Conclusion

Therefore, the correct answer is Option (a).

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Answer 2

Question

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.

Conclusion

Therefore, the correct answer is Option (a).

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Answer 3

Question

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.

Conclusion

Therefore, the correct answer is Option (a).

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Answer 4

Question

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.

Conclusion

Therefore, the correct answer is Option (a).

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Answer 5

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.

Conclusion

Therefore, the correct answer is Option (a).

Answer 6

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.

Conclusion

Therefore, the correct answer is Option (a).

Answer 7

Chapter 6, Problem 1TY

To determine

Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Answer 8

Expert Solution & Answer

Answer to Problem 1TY

Option (a)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Justification for correct answer:

Option (a): A good internal control system enables a company to manage their assets effectively and provide reliable data about their business and accounting records in accordance with the company policy. Therefore, it is a correct answer.

Justification for incorrect answers:

Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an audit process. Therefore, it is an incorrect answer.

Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.

Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.