Get premium membership and access questions with answers, video lessons as well as revision papers.
• Control environment: A sound control environment is created by management through communication, attitude and example. This includes a focus on integrity, a commitment to investigating discrepancies, diligence in designing systems and assigning responsibilities.
• Risk Assessment: This involves identifying the areas in which the greatest threat or risk of inaccuracies or loss exist. To be most efficient, the greatest risks should receive the greatest amount of effort and level of control. For example, dollar amount or the nature of the transaction (for instance, those that involve cash) might be an indication of the related risk.
• Monitoring and Reviewing: The system of internal control should be periodically reviewed by management. By performing a periodic assessment, management assures that internal control activities have not become obsolete or lost due to turnover or other factors. They should also be enhanced to remain sufficient for the current state of risks.
• Information and communication: The availability of information and a clear and evident plan for communicating responsibilities and expectations is paramount to a good internal control system.
• Control activities: These are the activities that occur within an internal control system. These are fully described in the next section.
kevinnyabute answered the question on March 5, 2018 at 09:13
- What are the disadvantages of rigidly adhering to a system of internal control?(Solved)
What are the disadvantages of rigidly adhering to a system of internal control?
Date posted: March 5, 2018. Answers (1)
- What are the main objectives of an internal control system?(Solved)
What are the main objectives of an internal control system?
Date posted: March 5, 2018. Answers (1)
- What are the specific needs of potential users audited financial statements?(Solved)
Financial accounting, for bachelor of business management
Date posted: March 5, 2018. Answers (1)
- Identify the potential users of audited financial information(Solved)
Identify the potential users of audited financial information.
Date posted: March 5, 2018. Answers (1)
- Outline the basic elements of an unqualified audit report(Solved)
Financial accounting, audit reports
Date posted: March 5, 2018. Answers (1)
- List the principal matters which auditors consider when forming an opinion on the financial statements(Solved)
List the principal matters which auditors consider when forming an opinion on the financial statements
Date posted: March 5, 2018. Answers (1)
- List and briefly explain the qualifications available to the auditor in drafting his audit report stating the circumstance in which each qualification is appropriate. Give...(Solved)
Financial accounting, auditing
Date posted: March 5, 2018. Answers (1)
- Explain the following terms as used in cost accounting 1. Explicit cost 2. Implicit cost(Solved)
Explain the following terms as used in cost accounting 1. Explicit cost 2. Implicit cost
Date posted: March 5, 2018. Answers (1)
- State key Differences between Cost Center and Profit Center(Solved)
State key Differences between Cost Center and Profit Center
Date posted: March 5, 2018. Answers (1)
- Define
1. cost control
2. cost reduction(Solved)
Cost accounting, Bachelor of commerce
Date posted: March 5, 2018. Answers (1)
- Explain the two major types of cost accounting(Solved)
Cost accounting
Date posted: March 5, 2018. Answers (1)
- Explain five differences between accounting and finance(Solved)
Introduction to financial accounting, Bachelor of commerce, diploma in business management
Date posted: March 5, 2018. Answers (1)
- Explain key differences between financial accounting and cost accounting(Solved)
Introduction to Financial accounting
Date posted: March 5, 2018. Answers (1)
- Outline five emerging and upcoming trends in the field of accounting and bookkeeping(Solved)
Outline five emerging and upcoming trends in the field of accounting and bookkeeping.
Date posted: March 5, 2018. Answers (1)
- Describe the following basic accounting terms 1.Accounting methods 2.Account receivable 3.Account payable 4.Capital 5.Cash flow statement 6.Credit and debit 7.Double-entry bookkeeping(Solved)
Describe the following basic accounting terms 1.Accounting methods 2.Account receivable 3.Account payable 4.Capital 5.Cash flow statement 6.Credit and debit 7.Double-entry bookkeeping
Date posted: March 5, 2018. Answers (1)
- Describe the difference between accounting and book keeping(Solved)
Introduction to financial accounting, Bachelor of commerce and business management
Date posted: March 5, 2018. Answers (1)
- Describe sevenaccounting policies or concepts(Solved)
Describe seven accounting policies or concepts.
Date posted: March 5, 2018. Answers (1)
- Define accounting and explain six users of accounting information(Solved)
Define accounting and explain six users of accounting information.
Date posted: March 2, 2018. Answers (1)
- What happens when a company goes into administration?(Solved)
What happens when a company goes into administration?
Date posted: February 26, 2018. Answers (1)
- What is the difference between going into liquidation and administration?(Solved)
What is the difference between going into liquidation and administration?
Date posted: February 26, 2018. Answers (1)