1. Internal control a. Two or more people working together to overcome internal controls. 2. Control procedures 3. Firewalls b. Part of internal control that ensures resources are not wasted. 4. Encryption c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports. 5. Environment 6. Information system 7. Separation of duties d. Should be prenumbered to prevent theft and inefficiency. 8. Collusion e. Limits access to a local network. 9. Documents f. Example: The person who opens the bank statement should not also be the person who is reconciling cash. 10. Audits g. Identification of uncertainties that may arise due to a company's products, services, or operations. 11. Operational efficiency 12. Risk assessment h. Examination of a company's financial statements and accounting system by a trained accounting professional. 13. Sarbanes-Oxley Act i. Without a sufficient one of these, information cannot properly be gathered and summarized. j. The organizational plan and all the related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting data. k. Component of internal control that helps ensure business goals are achieved. I. Rearranges data by a mathematical process. m. To establish an effective one, a company's CEO and top managers must behave honorably to set a good example for employees.
1. Internal control a. Two or more people working together to overcome internal controls. 2. Control procedures 3. Firewalls b. Part of internal control that ensures resources are not wasted. 4. Encryption c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports. 5. Environment 6. Information system 7. Separation of duties d. Should be prenumbered to prevent theft and inefficiency. 8. Collusion e. Limits access to a local network. 9. Documents f. Example: The person who opens the bank statement should not also be the person who is reconciling cash. 10. Audits g. Identification of uncertainties that may arise due to a company's products, services, or operations. 11. Operational efficiency 12. Risk assessment h. Examination of a company's financial statements and accounting system by a trained accounting professional. 13. Sarbanes-Oxley Act i. Without a sufficient one of these, information cannot properly be gathered and summarized. j. The organizational plan and all the related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting data. k. Component of internal control that helps ensure business goals are achieved. I. Rearranges data by a mathematical process. m. To establish an effective one, a company's CEO and top managers must behave honorably to set a good example for employees.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Understanding internal control, components, procedures, and laws
Match the following terms with their definitions.
Transcribed Image Text:1. Internal control
a. Two or more people working together to overcome
internal controls.
2. Control procedures
3. Firewalls
b. Part of internal control that ensures resources are not
wasted.
4. Encryption
c. Requires companies to review internal control and take
responsibility for the accuracy and completeness of their
financial reports.
5. Environment
6. Information system
7. Separation of duties
d. Should be prenumbered to prevent theft and inefficiency.
8. Collusion
e. Limits access to a local network.
9. Documents
f. Example: The person who opens the bank statement
should not also be the person who is reconciling cash.
10. Audits
g. Identification of uncertainties that may arise due to a
company's products, services, or operations.
11. Operational efficiency
12. Risk assessment
h. Examination of a company's financial statements and
accounting system by a trained accounting professional.
13. Sarbanes-Oxley Act
i. Without a sufficient one of these, information cannot
properly be gathered and summarized.
j. The organizational plan and all the related measures
that safeguard assets, encourage employees to follow
company policies, promote operational efficiency, and
ensure accurate and reliable accounting data.
k. Component of internal control that helps ensure
business goals are achieved.
I. Rearranges data by a mathematical process.
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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education