Explain the primary functions of internal controls procedures in the accounting area. What is meant by separation of duties?

Q: Identify the other control procedures usually found in a company’s system of internal controlbesides…

A: Internal control are the policies and procedures implemented in an organisation to ensure that the…

Q: Compare and contrast the work of external and internal audit in relation to internal controls.

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: Which type of control is considered a compensating control? a. segregation of duties b. access…

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Q: What are agency problems?

A: Owners of the company are shareholders. The number of the shareholders for a corporation will be…

Q: What are the roles of internal and external auditors?

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Transactions need to be classified appropriately. This internal control objective relates to all of…

A: Internal control objectives are desired goals or conditions which we want a system to satisfy. The…

Q: Substantive procedure does not involve in: Checking the operating effectiveness of internal control…

A: Substantive procedure: Substantive procedures are audit procedures performed to detect misstatement…

Q: Why should responsibility for related transactions be divided among different departments or…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Which of the following i not an element of internal control?A. Control environmentB. MonitoringC.…

A: Internal control can be defined as the process of persuading the objectives of the organization such…

Q: The purpose of separating the duties of hiring personnel and distributing payroll checks is…

A: Operational responsibility forms part of the record-keeping responsibility. Hence authorization of…

Q: taining in

A: Managerial Responsibilities entail being in charge of the overall management of a work unit (or…

Q: Describe the benefits of internal control report.

A: Internal Control Report:   An internal control report is the end result of the conducting an…

Q: Identify each of the following as a (a) purpose of an internal control system, (b) principle of…

A: Internal control system: Internal control system is a set of policies, procedures established to…

Q: How must an auditor document understanding of Internal Control?

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability…

Q: What is the link between the internal control environment and accountability?

A:

Q: Each of the following represents an internal control procedure except for:a. separation of duties.b.…

A:

Q: Discuss any separation of duties necessary to control against unauthorized entries to the general…

A: General Ledger:  The financial information required for the preparation of financial reports of…

Q: What are management’s and auditors’ respective responsibilities regarding internal control?

A: Internal control: Internal controls are set by management. it is important to understand that…

Q: When does an agency problem happen?

A: Agency problem is the probelm of difference in opinion of management and the shareholders.

Q: _____, which constitute one of the most important elements of internal control, include separating…

A: Explanation: Internal control systems need to be monitored - a process that assesses the quality of…

Q: What audit assertions and internal controls deal with the following and how are the assertions and…

A: Assertions: These are the claims made by the management regarding certain financial information and…

Q: What is an agency problem?

A: Agency problems also known as principal-agent problems  are conflicts of interest between managers…

Q: What is the difference between audit and accounting

A: Audit and accounting are two important things in business. Two of them are equally important for…

Q: Explain one of the principles of Internal Control Activities.

A: Internal control means creating a control environment in the organisation which ensures safeguarding…

Q: With regard to segregation of duties, rule one is that transaction authorization and transaction…

A: Answer: One of most important part of internal control is segregation of duties. It includes that…

Q: Explain how the purposes and principles of internal controls are different between accounting…

A: GAAP-Generally Accepted Accounting Principles:   They are commonly known as GAAP. It is a…

Q: Clear lines of authority and responsibility are essential to establishing a responsibility…

A: Responsibility Accounting System:  Its a system which Divides the Entire Organization in to multiple…

Q: What are management's and auditors' relative internal control responsibilities

A: Introduction:Management establishes internal controls. To preserve the integrity of the financial…

Q: At which points in the revenue cycle are independent verification controls necessary?

A:

Q: What types of audit procedures are typically performed in testing operating effectiveness of…

A: Test of Controls: The test of controls includes the procedures that are developed to generate…

Q: Authorization and Segregation of duties are the part of __________ a. Internal Control system b.…

A: Internal Control System :  It provides two types of controls within the entity, they are Preventive…

Q: How is independent verification carried out in a manual revenue system?

A: SOLUTION- Independent verification occurs in several departments as part of the sales order…

Q: From the list of assertions provided, select the relevant assertionts) to each control objective.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What are subsidiary ledgers and control accounts,and why are they used? Describe how they work.

A: An accounting ledger is an accounting account or record that keeps track of activities on the…

Q: Which of the following is not one of the categories of control activities? a.Checks on recorded…

A: Control activities are implemented by a entity as a part of internal control in order to safeguard…

Q: Give examples of tests of controls to test theoperating effectiveness of internal controlsin the…

A: Test of Controls: The test of controls includes the procedures that are developed to generate…

Q: In comparison to the external auditor, an internal auditor is more likely to be concerned with а.…

A: Auditing is the verification for the financial statements prepared by the entity so that necessary…

Q: How can agency problems be resolved.

A: A principal is one who hires an agent to perform some of his duties. Hence, it is the responsibility…

Q: Identify important internal control activitiespresent in a properly designed system tomitigate the…

A: Internal control activities to mitigate risk in revenue and collection cycle: 1. Monthly…

Q: What is a service organization? Why would it engage an auditor to report on its controls?

A: A process under which a quality system is inspected, examined, and verified to make sure that it is…

Q: What is Management Responsible for in regards to Internal Control?

A: Internal control: Internal control is a process which ensures continuous reliability of…