Introduction: Internal control is the process implemented by the company’s officials which helps in achieving organizational objectives of effectively managing operations, reporting and compliance with processes and laws.
To choose: Whether the given statement is true or false.
Answer to Problem 1TFQ
The given statement is true.
Explanation of Solution
When there is effective control implemented in the organization, adherence to best internal practices and procedures is ensured. When best practices are implemented, it helps in achieving efficiency in all activities of the organization implying wastes are controlled, process time are reduced and delays in processes are controlled. Financial reporting which is important both internal and external users of financial statements can be done effectively, speedily and accurately. When reports are available in time and contains all required details, it provides scope for more informed decisions. Thus, the given statement is true.
Want to see more full solutions like this?
Chapter 3 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
- Which one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.arrow_forwardProviding timely information about transactions in sufficient detail to permit proper classification and financial reporting is an example of a. the control environment. b. risk assessment. c. information and communication. d. monitoring.arrow_forwardExplain the scope and enbironment of financial managementarrow_forward
- Differentiate Financial Reporting and Management Reporting. How are they related?arrow_forwardExplain the objectives of financial reporting.arrow_forwardAnalyse the consequences of financial management and failure to adhere to regulations, including potential legal, financial, and repuational implicationsarrow_forward
- Distinguish between IASB standards and the Conceptual Framework for Financial Reportingarrow_forwardWhich of the following is a benefit of providing financial information? O Auditing. O Potential litigation. O Disclosure to competition. O Improved allocation of resources.arrow_forwardwhat type of MIS tools are currently being used in Financial management? What MIS Application are you certainly able to use?arrow_forward
- A setup in the finance system that ensures clear ownership of responsibilities.A. Macroprudential frameworkB. Institutional arrangementsC. Open market OperationsD. Regulatory Frameworkarrow_forwardExplain the role of regulators in monitoring and enforcing ALM policies and limits. Describe how they use ALM information to assess the safety and soundness of financial institutions.arrow_forwardPlease be specific in identifying the different types of technologies used by MNCs in Financial Reporting. Don't just state them but give detailed answers explaining the benefits of these technologies in Financial Reporting.arrow_forward
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning