ACC 315 5-1 Problem Set Question 6 of 10

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School

Southern New Hampshire University *

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Course

315

Subject

Accounting

Date

Feb 20, 2024

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docx

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ACC 315 5-1 Problem Set Question 6 of 10 < > (a) Your Answer Correct Answer v Your answer is correct. For the items listed in Column 1, identify each as a control objective or as one of the interrelated components of the internal control framework. Then, for the interrelated components, list them in the correct sequential order. Column 1: COSO IC Objectives or IC Components A. Operations B. Risk assessment C. Monitoring D. Information and communication E. Compliance F. Control activities G. Control environment H. Reporting eTextbook and Media Solution Objectives/Components Control objectives Components of internal control Components of internal control Components of internal control Control objectives Components of internal control Components of internal control Control objectives Correct Sequential Order Attempts: 1 of 2 used

Question60f10 < > 453/5 = i (b) Your Answer | Correct Answer = Your answeris partially correct. Match each Control in Column 2 with a.0ne or more Internal Control Objectives from Column 1. b. The single most appropriate Internal Control Component from Column 1. Column 2: Controls Implemented For Firm ABC 1. The executive team meets quarterly to review all business risks (including the potential for fraud), implements risk responses, and manages risk, including making changes to the system of internal control. ‘The executive team meets each month to review the monthly financial statements and accounting ratios provided by the controller and approved by the CFO. The main objective of this review is to see whether the firm has met operational and financial performance goals. 3. The employee who performs bank reconciliations is someone other than the employees who handle cash and generate payments from the firm. 4. Management implemented a code of ethics, which includes policies on conflicts of interest. All employees, including executives, electronically sign an acknowledgment that they have read, understand, and agree to abide by the code. 5. Management implemented continuous monitoring over the call center to confirm that the call center answers the calls ina timely manner. 6. Strong controls are in place to ensure proper accounting for and timely payment of statutory payroll deductions, like (1) federal, state, and local income taxes and (2) social security and Medicare deductions and firm contributions, to the respective governmental agencies. 7. The human resources department has processes in place to ensure that employees at all levels have the qualifications, experience, and training to efficiently and effectively perform their work. 8. There are controls in place to ensure that the audit committee receives reports in a timely manner on internal control deficiencies identified by the internal audit department.