ACC 201 MOdule four assignment

ning Objective 1 S8-1 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 busi- ness to survive? Give your reason.

Question 27 When completing the audit of internal controls for a public company the PCAOB requires auditors to audit internal controls over:     Operations     Compliance with regulations     Financial Reporting     All of the answers shown

Question 13 Internal control is intended to provide absolute assurance that an organization will achieve its objective of reliable financial reporting.    True  False

Question 18 According to the PCAOB, during the audit of internal controls for an issuer (public company), the ultimate objective of testing the design effectiveness of internal controls is to:     Determine whether the company's controls are processing data effectively.     Determine whether the company's controls will satisfy control objectives and prevent or detect errors or fraud that could result in material misstatements to the financial statements.     Determine that the company's employees are processing the controls according to policy and procedures manuals at the company.     None of the answers provided are correct..

Question 8 organizations use the GAAP framework of internal control as a benchmark when assessing the effectiveness of internal control over financial reporting.  True  False

QUESTION 1 The objectives of internal control are to a. provide control over "internal-use only" reports and employee internal conduct b. prevent fraud, and promote the social interest of the company c. provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with d. control the internal organization of the accounting department personnel and equipment

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.

Question 34 A transaction level internal control activity is best described as:     An action taken by auditors to obtain evidence     An action taken by company (client) personnel for the purpose of preventing, detecting and correcting errors and frauds in transactions.     A method for recording, summarizing and reporting financial information.     none of the answers provided are correct

ISA 300 Planning an Audit of Financial Statements provides guidance to auditors. Planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan. Adequate planning benefits the audit of financial statements in several ways.Required:Identify and explain the five stages in audit process. Discuss three importance of audit planning. b) You are the audit senior in charge of the audit of Malaika Company and have been informed by your audit manager that during the year a fraud occurred at the client. A payroll clerk set up fictitious employees and the wages were paid into the clerk’s own bank account. This clerk has subsequently left the company, but the audit manager is concerned that additional frauds have taken place in the wages department.Required:i) Describe six procedures which should be undertaken during the audit of wages as a result of the manager’s assessment of the increased risk of fraud.

QUESTION 1  The last decade has seen increased attention paid to internal audit as an integral component of corporate governance mechanisms, which are designed to strengthen risk management systems of organizations and enhance financial reporting quality. Internal audit serves as a crucial resource in corporate governance by providing services to boards of directors, management and external auditors. Internal audit has also transformed from a predominantly appraisal function to a consulting paradigm over the last several decades.   REQUIRED Analyze in detail the elements of Independence needed for Internal Audit to operate effectively in ensuring the effectiveness of the services provided by the Internal Auditors.

Q-3 The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively. ABCD Limited is concerned about its Internal Audit (IA) function. Recently, ABCD Limited is expanding and reorganizing its Internal Audit (IA) function. Currently the Director of Internal Audit, Shuja Mehboob, reports to the corporate controller, who receives and reviews all internal audit reports. Mehboob forwards copies of the internal audit reports to the audit committee of the board of directors and to the manager directly responsible for the function being audited.   An issue of contention among the management team pertains to which department or function the Director of Internal Audits should report. Martin Stevens the CEO wants to ensure that ABCD Limited complies with the SOX and that the internal audit department is structured such that it strengthens the company’s internal control system. Also, an…

QUESTION 1  The last decade has seen increased attention paid to internal audit as an integral component of corporate governance mechanisms, which are designed to strengthen risk management systems of organizations and enhance financial reporting quality. Internal audit serves as a crucial resource in corporate governance by providing services to boards of directors, management and external auditors. Internal audit has also transformed from a predominantly appraisal function to a consulting paradigm over the last several decades. REQUIRED: Evaluate the steps audit committee can take to facilitate proper oversight and direction of Internal Audit.

S8-1 Definition of internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency and ensure accurate records. Which objective is most important? Which must the internal controls accomplish for the business to survive? Give your reasons.

Question 9 financial accounting

Accounting 20. Below is an internal control associated with some financial statement audit cycle that the auditors identified for one of their clients. Indicate the control activity that is being considered in question bonder this case. "The president of the company signs the checks once he compares the drawn check against the documents that substantiate the disbursement (underlying documents)." a. Segregation of tasks (adequate separation of duties) b. Adequate documents and records c. Physical controls over assets and records (physical controls) d. Proper authorization of transactions and activities

Problem 7: Auditing Sales/Revenue TransactionsWhen an auditor needs to obtain an understanding of the overall internal control of a company, the auditor             first needs to consider the elements of the control environment. To assist the auditor in assessing the level of control risk, the following tests of controls were designed to allow the auditor to determine if the company’srelated controls were operating effectively in the revenue cycle.                                                    Determine which of the four management assertion(s) apply to each individual sales (revenue) control being discussed. Hint: many have more than one assertion.                                                     Management Assertions:  Existence & Occurrence, Rights, Completeness, Valuation                                                                                         1. The company segregates the duties for authorizing, approving customer credit, shipping merchandise,…

Understanding internal control, components, procedures, and laws Match the following terms with their definitions.

Internal controls are crucial to ensuring that financial transactions are authorized and company records are maintained properly. Please explain some of the internal control procedures that accounting departments utilize to achieve the aforementioned goals. How do these internal controls help accounting departments achieve their objectives?