List several control activities of an effective internal control?
Control Activities
Control Activities are the activities set up through approaches and methods that assistance guarantee that administration's orders to relieve dangers to the accomplishment of goals are completed.
Control Activities are performed at all dimensions of the element, at different stages inside business forms, and over the innovation condition.
They might be preventive or investigator in nature and may envelop a scope of manual and mechanized exercises, for example, approvals and endorsements, checks, compromises and business execution surveys.
Isolation of obligations is regularly incorporated with the choice and advancement of control exercises. Where isolation of obligations isn't reasonable, the board chooses and creates elective control exercises.
The four types of control activities are :
(1) performance review,
(2) information processing,
(3) physical controls and
(4) segregation of duties.
List the 3 basic guidelines for an effective system of internal control over CASH:
Check m Required: Match the following internal controls with the categories of control activities. Control Activities C Internal Controls Separate handling cash (receipt and deposit) functions from record-keeping functions (recording transactions in the accounts receivable subsidiary ledger). Require purchases, payroll, and cash disbursements to be authorized by a designated person Require accounting department employees to take vacations. d. Separate purchasing functions from payables functions. e. Ensure that the same person isn't authorized to write and sign a check f. When...
Indicate the COSO component that matches with each of the following internal control activities. COSO components Internal control activities a. Reporting of control effectiveness to mid-level managers. b. Independent review of controls c Analyses of fraud risk factors. d. Implementation of policies to reduce risk of internal control failure Information & communication Monitoring Risk assessment Control activities
Is it necessary for an acquiring company to know ab out the effective internal control in place at the acquired company? Or it does not matter. Why?
1. What is the connection between the Sarbanes Oxley Act and an internal control framework? 2. The COSO framework identifies “a commitment to ethics & integrity” as an important "attribute" of a company’s control environment (i.e. company culture). Please list at least 4 activities (not definitions of ethics/integrity or value/philosophy statements), but specific company’s practices, procedures and/or actions) that demonstrate it has a highly effective “ethical culture” as it relates to a review of ICFR.
Management should establish control activities that are effective and efficient. When designing and implementing control activities, management should try to get the maximum benefit at the lowest possible cost. Is there any rules to get the maximum benefit?
Requirement a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as adequate documents and records or physical control over assets and records). Internal control Control activity(ies) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the 1. employee's background, former employers, and references. Approval of department head or foreman on time records is required 2. before preparing payroll. Adequate documents and records All...
Effective segregation of duties is sometimes not economically feasible in a small business. What internal control elements do you think can help compensate for this threat?
List three internal control issues regarding the HR and Payroll department.
Select the appropriate components of internal control for each of the following descriptions Components of Internal Control Descriptions a. Procedures for maintaining separation of duties b. Routine activities that are meant to continually observe internal control activities c. Transfer of data from lower managers to top executives for accurate financial reporting d. Formal policies to evaluate internal and external threats to achieving company objectives . Overall attitude of the company with respect to internal controls