EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 2, Problem 2.20MCQ
To determine
Introduction:
Business Objective is defined as a detailed picture of a result that company wants to achieve.
Strategies are the way to achieve the business objective. It’s the layout of Objective i.e., how to get there.
Process is defined as a series of actions in order to achieve strategies planned.
Transaction is exchange, sale, purchase that involves money and has impact on financial statements.
Internal Controls procedures, rules or policies implemented by a management to safeguard assets and ensure transactions are being carried out in an efficient and effective manner, promote accountability, check compliance of laws, regulations and standards and minimize risk by preventing fraudulent behavior.
To describe: Relationship between business objectives, strategies, processes, transactions and control.
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Students have asked these similar questions
An internal control system is made up of all rules and processes that are used to safeguard assets, assure accurate accounting, improve efficiency, and enforce compliance with business standards. Are you in agreement or disagreement with this assertion? How come or why not?
Entity-level controls support broad organizational objectives while direct controls support objectives at the transactional level. What is a way that internal controls support an organization's transactional objectives?
a. preserving shareholders' or stakeholders' interests
b. promoting operational efficiency & effectiveness
c. ensuring regulatory & legal compliance
d. protecting & safeguarding assets
What types of physical controls are in place to protect company assets (assets include inventory, cash, equipment, etc.)?
What types of controls are in place to protect data (such as company information or customer personal information)?
Choose one more internal control principle from this module, and explain how the company implements that principle and the purpose?
Chapter 2 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 2 - Prob. 2.1RQCh. 2 - Prob. 2.2RQCh. 2 - Prob. 2.3RQCh. 2 - Prob. 2.4RQCh. 2 - Prob. 2.5RQCh. 2 - Prob. 2.6RQCh. 2 - Prob. 2.7RQCh. 2 - Prob. 2.8RQCh. 2 - Prob. 2.9RQCh. 2 - Prob. 2.10RQ
Ch. 2 - Prob. 2.11RQCh. 2 - Prob. 2.12RQCh. 2 - Prob. 2.13RQCh. 2 - Prob. 2.14RQCh. 2 - Prob. 2.15MCQCh. 2 - Prob. 2.16MCQCh. 2 - Prob. 2.17MCQCh. 2 - Prob. 2.18MCQCh. 2 - Prob. 2.19MCQCh. 2 - Prob. 2.20MCQCh. 2 - Prob. 2.21MCQCh. 2 - Prob. 2.22MCQCh. 2 - Prob. 2.23MCQCh. 2 - Prob. 2.24PCh. 2 - Prob. 2.25PCh. 2 - Prob. 2.26P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- What are the components of internal control per COSO’s Internal Control—Integrated Framework? a. Organizational structure, management philosophy, planning, risk assessment, and control activities. b. Control environment, risk assessment, control activities, information and communication, and monitoring. c. Risk assessment, control structure, backup facilities, responsibility accounting, and natural laws. d. Legal environment of the firm, management philosophy, organizational structure, control activities, and control assessment.arrow_forwardWhat is a management control system? What are its components and how does the system help the business?arrow_forwardEnsuring that all material transactions processed by the information system are valid and in accordance with management’s objectives is an example ofa. transaction authorization. b. supervision. c. accounting records. d. independent verification.arrow_forward
- An internal control system consists of all policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. Do you agree or disagree with this statement. Why or why notarrow_forwardWhich of the following is not one of the components of COSO’s framework? A. Objective setting which includes setting the objectives and critical success factors B. Continuously monitoring the ERM process C. Risk Assessment to manage risk related to achieving corporate objectives D. Safeguarding assets to prevent or detect unauthorized acquisition, use or disposition E. Control Activities which include policies and procedures to assure that management’s control objectives are metarrow_forwardAll of the rules and processes used to safeguard assets, assure accurate accounting, promote efficient operations, and encourage compliance with business regulations make up an internal control system. What do you think of this statement? What are the reasons for or againstarrow_forward
- How can organizations ensure the seamless integration of computerized accounting systems with other business processes, and what measures should be implemented to enhance the security and confidentiality of financial data within these systems?arrow_forwardThe internal control of an organization is made up of control of the environment. all of these. control activities. O the accounting system.arrow_forward. According to COSO, which component of enterprise risk management (ERM) addresses an entity’s operating structures and core values? A. Review and revision. B. Governance and culture. C. Strategy and objective-setting. D. Information, communication, and reporting.arrow_forward
- IT auditors assist organizations by evaluating business and IT-related risks and the effectiveness of the organization's system of internal controls thereby providing to key stakeholders. a) Internal control b) Risk mitigation c) IT governance d) Assurancearrow_forwardThe most important fundamental component of an entity’s internal control isa. Effectiveness and efficiency of operations.b. People who operate the control system.c. Reliability of financial reporting.d. Compliance with applicable laws and regulations.arrow_forwardWhich of the following are correct regarding why management uses internal controls? (Check all that apply.) Multiple select question. Protect assets. Uphold company policies. Ensure reliable accounting. Reduce vendor payables. Increase revenues. Promote efficient operations.arrow_forward
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