
Identify the term that best describes policies, plans, and procedures implemented by a firm to protect the assets of the organization.

Answer to Problem 1TY
Option (a)
Explanation of Solution
Justification for correct answer:
Option (a): A good internal
Justification for incorrect answers:
Option (b): SAS No.94 refers to the Statement of Auditing Standards No.94. It illustrates the effect of Information Technology on Auditor’s consideration of internal control in an
Option (c): Risk assessment is the systematic process of evaluating any potential risks that may arise in future. A proper risk assessment will allow the company to anticipate such risks and adequate counter measures can be taken for the same. Therefore, it is an incorrect answer.
Option (d): Monitoring refers to the periodic review of the internal control system in order to verify the completeness and check for any weakness. Therefore, it is an incorrect answer.
Therefore, the correct answer is Option (a).
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Chapter 13 Solutions
Core Concepts of Accounting Information Systems
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