Indicate whether each of the following statements regarding internal controls is true or false.
Internal ControlsInternal control is all of the policies and procedures management uses to achieve the following goals. Show
ResponsibilityManagement Responsibility: Administrative management is responsible for maintaining an adequate system of internal control. Management is responsible for communicating the expectations and duties of staff as part of a control environment. They are also responsible for assuring that the other major areas of an internal control framework are addressed. Staff Responsibility: Staff and operating personnel are responsible for carrying out the internal control activities set forth by management. Framework for Internal ControlThe framework of a good internal control system includes:
Internal Control Activities and Best PracticesInternal control activities are the policies and procedures as well as the daily activities that occur within an internal control system. A good internal control system should include the control activities listed below. These activities generally fit into two types of activities.
Click on the links below for information regarding these activities including best practices.
Other Internal Control Best PracticesWith a good internal control system in place, other considerations to keep in mind include:
Additional InformationWashington State Office of Financial Management's guide to internal control and auditing Which of the following statements about controls is false?Explanation: the internal auditor is appointed by the shareholders after the approval of the management is the statement about control is false because it is wrong statement about control.
Which one of the following is not an example of or a form of internal control?Hence, depositing cash weekly is not an example of internal control system. Hence, option (b) is correct.
What are the internal controls in auditing?Internal control is a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance: That information is reliable, accurate and timely. Of compliance with applicable laws, regulations, contracts, policies and procedures.
Which of the following is not an internal control over cash?Accordingly, it is not part of sound internal control for cash to have the same individual receives the cash and pays the bills. So, the correct answer is option B. The same individual receives the cash and pays the bills.
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