Horngren's Accounting Plus MyAccountingLab with Pearson eText -- Access Card Package (11th Edition) (Miller-Nobles et al., The Horngren Accounting Series)
11th Edition
ISBN: 9780134077338
Author: Tracie L. Miller-Nobles
Publisher: PEARSON
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Textbook Question
Chapter 8, Problem E8.15E
Understanding internal control, components, procedures, and laws
Learning Objectives 1, 2, 3
Match the following terms with their definitions.
1. Internal control |
a. Two or more people working together to overcome internal controls. |
2. Control procedures |
b. Part of internal control that ensures resources are not wasted. |
3. Firewalls |
c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports. |
4. Encryption |
d. Should be prenumbered to prevent theft and inefficiency. |
5. Environment |
e. Limits access to a local network. |
6. Information system |
f. Example: The person who opens the bank statement should not also be the person who is reconciling cash. |
7. Separation of duties |
h. Examination of a company's financial statements and accounting system by a trained accounting professional. |
8. Collusion |
g. Identification of uncertainties that may arise due to a company's products, services, or operations. |
9. Documents |
i. Without a sufficient one of these, information cannot properly be gathered and summarized. |
10. Audits |
j. The organization plan and all the related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiently, and ensure accurate and reliable accounting data. |
11. Operational efficiency |
k. Component of internal control that helps ensure business goals are achieved. |
12. Risk assessment |
l. Rearranges data by a mathematical process. |
13. Sarbanes-Oxley Act |
m. To establish an effective one, a company's CEO and top managers must behave honorably to set a good example for employees. |
Expert Solution & Answer
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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.
1) Why is Responsibility Accounting necessary and how is it implemented?
2) Determination of control risk in the HR cycle (personnel) include an example of the explanation you gave?
3) To design an audit program for testing controls, what stages must the auditor go through when auditing a banking service company?
(This is about Accounting Information System.)
1. Distinguish between ethical issues and legal issues.
2. When a company has a strong internal control structure, stockholders can expect the elimination of fraud. Comment on the soundness of this statement.
3. Distinguish between employee fraud and management fraud.
4. Discuss the Sarbanes-Oxley Act.
Please provide me a correct answer. Thank you!
Chapter 8 Solutions
Horngren's Accounting Plus MyAccountingLab with Pearson eText -- Access Card Package (11th Edition) (Miller-Nobles et al., The Horngren Accounting Series)
Ch. 8 - Which of the following is not part of the...Ch. 8 - Prob. 2QCCh. 8 - Prob. 3QCCh. 8 - Prob. 4QCCh. 8 - Prob. 5QCCh. 8 - Prob. 6QCCh. 8 - Prob. 7QCCh. 8 - Prob. 8QCCh. 8 - Prob. 9QCCh. 8 - Prob. 10QC
Ch. 8 - Prob. 11QCCh. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - What are the five components of internal control?...Ch. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - What are the steps taken to ensure control over...Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. S8.6SECh. 8 - Prob. S8.7SECh. 8 - Prob. S8.8SECh. 8 - Prob. S8.9SECh. 8 - Prob. S8.10SECh. 8 - Prob. S8.11SECh. 8 - E8-13 Identifying internal controls Learning...Ch. 8 - Prob. E8.13ECh. 8 - Prob. E8.14ECh. 8 - Understanding internal control, components,...Ch. 8 - Prob. E8.16ECh. 8 - Prob. E8.17ECh. 8 - Prob. E8.18ECh. 8 - Prob. E8.19ECh. 8 - Prob. E8.20ECh. 8 - Prob. P8.21APGACh. 8 - Correcting internal control weakness Each of the...Ch. 8 - Prob. P8.23APGACh. 8 - Prob. P8.24APGACh. 8 - Prob. P8.25APGACh. 8 - Prob. P8.26APGACh. 8 - Prob. P8.27BPGBCh. 8 - Prob. P8.28APGACh. 8 - Prob. P8.29BPGBCh. 8 - Prob. P8.30BPGBCh. 8 - Prob. P8.31BPGBCh. 8 - Prob. P8.32BPGBCh. 8 - Prob. P8.33CPCh. 8 - Prob. P8.34PSCh. 8 - Prob. 8.1DCCh. 8 - Prob. 8.2DCCh. 8 - Prob. 8.1FCCh. 8 - Prob. 8.1FSC
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