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Internal control refers to a process for assuring achievement of an company's goal's in operational efficiency and effectiveness, reliable financial reporting, and compliance with regulations, laws, and policies. An effective internal control over financial reporting in a company gives reasonable assurance in regard to the reliability of financial reporting and the preparation of financial statements for external purposes
Internal control includes the checks, procedures, tools, systems adopted by the management to ensure the prevention of frauds, integrity of financial information, safeguarding of assets, errors, etc. Without an adequate internal control in place there is no manner to trace the root causes that created the shrinkage in the business. A sound system of internal control mandates with an evaluation of the nature and extent of risks at periodic intervals, and remains flexible for the adaption of changes in the risk environment. An efficient management program stipulates requirements of internal control that need compliance while making strategic positioning or taking decisions related to organisation expansions, portfolio adjustments, and other important concerns. For example: proper authorization, separation of duties, physical control over assets, and adequate documentation.
An auditor is highly likely to be concerned with internal control policies and procedures that give reasonable assurance about the entity's ability to process and summarize financial data. Auditors have to mainly focus on internally arising risks, especially risks arising from dishonesty or incompetence. The five main elements on which auditor are most concerned with control environment, risk assessment, information activities and communication system, control activities and monitoring of control. Examples of internal controls relevant to an audit include password systems for control on the accounting software, bank reconciliation and inventory observations.
Using rendition of Internal Control under, discuss in your own words what you understand by the...
1. Using the definition of Internal Control, discuss what is understood by the term ‘Internal Control’. What are management’s and internal auditor’s responsibilities with respect to internal controls? What are suitable examples. 2. COSO Internal Control Framework is organized as comprising of Objectives, Components and Organizational Structure (Entity). What are the 'Components' of COSO Internal Control Framework in details. Any personal experiences or something that have read about. ( this can help - https://aaahq.org/Login?returnurl=%2f to do research on the component...
Good internal control starts at the top of any organization. The tone of the organization is established with senior management. Due to the significance of management’s role in the organization the Sarbanes-Oxley Act outlined management’s responsibilities for internal controls over financial reporting. Discuss management’s responsibilities under Sarbanes-Oxley. Be sure to include your opinion on how these responsibilities may improve a company’s internal control structure.
using your own words, What are the benefits of cloud computing? using your own words, Explain the cloud. using your own words, What is a business process? Give three examples. using your own words, What is the difference between business deliverables and objectives? using your own words, List and give examples of the three components of a business process.
What are management's requirements for internal control? What are the auditor’s requirements for internal controls for public and private clients? What are entity-level controls and how do they impact the audit on internal controls? Provide examples of these controls. What are the standard setters and the name of the standards for public and private audit clients?
In a minimum of 150 words explain in your own words what you understand about Keynesian Theory. Make sure you are using your own understanding. Pretend you are explaining this to your Parents after class, and you are very excited about the new information you have acquired
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Discuss the limitations of Internal Control. Why are internal controls not a guarantee that all is above board? Put this concept in the context of your current work environment or one in which you have previously worked. What does this look like in your world?
Please help me I do not understand. Thank you! In your own words first, discuss three causes for the Cambrian explosion. Then address this question: Multicellularity evolved right before the Cambrian explosion; how do you think multicellularity enabled the Cambrian explosion (base your response on our discussion regarding the evolution of multicellularity).
Discuss in your own words the application of risk management techniques needed to make a facility safer. Please give detailed examples.
1. Define internal control. 2. Internal control provides reasonable assurance. Explain. 3. What are the objectives of a system of internal control? 4. Enumerate, and explain briefly, the components of an internal control. 5. What is the control environment? What are the elements that comprise the control environment? 6. What is meant by risk assessment process? 7. What is an information system? 8. What are control activities? 9. Give the different types of control activities. 10. Why is it necessary...