Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories: Safeguarding assets for business purposes. Providing accurate business information. Compliance with laws and regulations by employees and managers. To choose: The correct option.

Question

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Answer 1

Question

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

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i want to this question answer of this general accounting

A clothing retailer provides the following financial data for the year. Determine the cost of goods sold (COGS): ⚫Total Sales: $800,000 • Purchases: $500,000 • Sales Returns: $30,000 • Purchases Returns: $40,000 • Opening Stock Value: $60,000 • Closing Stock Value: $70,000 Administrative Expenses: $250,000

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Answer 2

Question

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

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Answer 3

Question

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

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Answer 4

Question

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

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Answer 5

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

Answer 6

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

Answer 7

Chapter 5, Problem 1SEQ

To determine

Introduction:

Internal control is a process affected by management and directors of the company to provide reasonable assurance in achieving objectives in the following categories:

Safeguarding assets for business purposes.

Providing accurate business information.

Compliance with laws and regulations by employees and managers.

To choose:

The correct option.

Answer 8

Expert Solution & Answer

Answer to Problem 1SEQ

c.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanation for correct answer:

The Committee of Sponsoring Organizations of Treadway Commission (COSO) framework has three objectives to assess the effectiveness of the system of internal control relating to safeguarding the assets against any loss:

Encompassing reliability.
Transparency and timeliness of business information.
Adhering to laws and regulations by the entity.

Thus, compliance with laws and regulations is not an element of internal control defined in COSO framework. It is one of the objectives of internal control system.

Explanation for incorrect answers:

Option A-Control Environment:

It is an element of internal control that defines the attitude of management and employees towards the need of internal control system and expected standards of the conduct.

Option B- Monitoring:

It is an important element to assess the weaknesses in operating internal controls and evaluate the activities of managers and supervisors, the budget and other financial documents.

Option D-Control Procedures:

It is an element of internal control which provides reasonable assurance that the objectives laid down by the management will be achieved including prevention of fraud.

Conclusion:

Thus, the elements of internal control-integrated framework include control environment, monitoring and controlling procedures while complying with laws and regulations is an objective of a control environment.

Answer 12

Ch. 5 - Prob. 1SEQ Ch. 5 - Prob. 2SEQ Ch. 5 - Prob. 3SEQ Ch. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQ Ch. 5 - Prob. 1CDQ Ch. 5 - Prob. 2CDQ Ch. 5 - Prob. 3CDQ Ch. 5 - Prob. 4CDQ Ch. 5 - Prob. 5CDQ

Answer to Problem 1SEQ

Explanation of Solution

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Chapter 5 Solutions