Problem

Internal control, components, procedures, and laws [20-25 min]TERMS:DEFINITIONS:1. Collusi...

Internal control, components, procedures, and laws [20-25 min]

TERMS:

DEFINITIONS:

1. Collusion

A. The “tone at the top” of the business.

2. Controller

B. Control procedure that divides responsibility between two or more people.

3. Lock-box system

C. Outside accountants completely independent of the business who monitor the controls to ensure that the financial statements are presented fairly in accordance with GAAP.

4. Firewalls

D. After using this process, messages cannot be read by those who do not know the code.

5. Encryption

E. Two or more people working together to circumvent internal controls and defraud a company

6. Control environment

F. The chief accounting officer of a company.

7. Documents

G. The organizational plan and all related measures that promote operational efficiency.

8. Internal control

H. Prevents nonmembers from accessing the network but allows members to access the network.

9. External auditors

I. Without a sufficient one of these, information cannot properly be gathered and summarized.

10. Timing difference

J. These should be pre-numbered to prevent theft and inefficiency.

11. Information system

K. A system in which customers pay their accounts directly to a business?s bank.

12. Separation of duties

L. Differences that arise between the balance on the bank statement and the balance on the books because of a time lag in recording transactions.

Requirement

1. Match the terms with their definitions.

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