Which of the following is not part of the definition of internal control? Learning Objective 1 Separation of duties Safeguard assets Encourage employees to follow company policies Promote operational efficiency

Question

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Answer 1

Textbook Question

Chapter 8, Problem 1QC

Which of the following is not part of the definition of internal control?

Learning Objective 1

Separation of duties
Safeguard assets
Encourage employees to follow company policies
Promote operational efficiency

Expert Solution & Answer

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.

Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

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03:01

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Ohms Company manufactures plugs at a cost of $41 per unit, which includes $5 of fixed overhead. Ohms needs 30,000 of these plugs annually (as part of a larger product it produces). Wire Company has offered to sell these units to Ohms at $43 per unit. If Ohms decides to purchase the plugs, $60,000 of the annual fixed overhead cost will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. If Ohms Company purchases the plugs but does not rent the unused facility, the company would: Save $5.00 per unit. Lose $8.00 per unit. Save $4.00 per unit. Lose $5.00 per unit. Save $3.00 per unit.

Answer 2

Textbook Question

Chapter 8, Problem 1QC

Which of the following is not part of the definition of internal control?

Learning Objective 1

Separation of duties
Safeguard assets
Encourage employees to follow company policies
Promote operational efficiency

Expert Solution & Answer

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.

Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

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03:01

Answer 3

Textbook Question

Chapter 8, Problem 1QC

Which of the following is not part of the definition of internal control?

Learning Objective 1

Separation of duties
Safeguard assets
Encourage employees to follow company policies
Promote operational efficiency

Expert Solution & Answer

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.

Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

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03:01

Answer 4

Textbook Question

Chapter 8, Problem 1QC

Which of the following is not part of the definition of internal control?

Learning Objective 1

Separation of duties
Safeguard assets
Encourage employees to follow company policies
Promote operational efficiency

Expert Solution & Answer

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.

Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.

Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

Answer 8

Expert Solution & Answer

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.

Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Answer 12

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

Safeguarding of assets.
Encourage employees to follow company policies.
Promote Operational efficiencies
Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.