Define the term internal control.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Explain the difference between the accrual basis and cash basis of accounting. What are the advantages and disadvantages of each method? Answer

Correct Answer

MCQ

Answer 2

Question

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Answer 6

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Answer 7

Chapter 7, Problem 1RQ

To determine

Define the term internal control.

Answer 8

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statement of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

Internal control:

Internal control is a process of controlling the activities within the organization. Business deals with various set of activities. To perform every activity effectively, the management of the company should control and manage the activities. The control of the activities is known as an internal control.

The auditor would be able to get an idea about the management of the company. How the company works, how the company handles its business activities and what is the manner of recording. It will provide a guideline for the audit test. By analyzing the internal control, the auditor would be able to perform an audit test.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 7 - Prob. 1RQ Ch. 7 - Prob. 2RQ Ch. 7 - Prob. 3RQ Ch. 7 - Prob. 4RQ Ch. 7 - Prob. 5RQ Ch. 7 - Prob. 6RQ Ch. 7 - Prob. 7RQ Ch. 7 - Identify the four types of control activities and...Ch. 7 - One basic concept of internal control is that no...Ch. 7 - Prob. 10RQ

Define the term internal control.

Define the term internal control.

Explanation of Solution

Want to see more full solutions like this?

Chapter 7 Solutions