The objectives of Internal controls are as follows: 1) Optimize use of Company Resources o Prevent unnecessary duplication and waste
What is an objective of internal control?
Ensure compliance with laws and regulations 2) Internal control is defined, in part, as a plan that safeguards a. all statement of Question: 1) Which one of the following is not an objective of a system of internal controls? a. Safeguard company assets b.
What is internal control of assets?
Internal control is defined, in part, as a plan that safeguards a. all balance sheet accounts. b. assets. c. liabilities. d. capital stock.
What are the examples of internal control procedures?
All of the following are examples of internal control procedures except a. using prenumbered documents. b. reconciling the bank statement. c. customer satisfaction surveys. d. insistence that employees take vacations. c Each of the following is a feature of internal control except a. an extensive marketing plan. b. bonding of employees.
Which internal control feature would address the easiest asset to steal?
An internal control feature that would address this situation would be human resource controls. Due to its liquid nature, cash is the easiest asset to steal. Sam's Grocery Store has the following policy. 'Only one cashier can have access to a cash drawer.' Which internal control principle supports this policy? Establishment of responsibilities.
What are the 3 internal control objectives?
When undergoing a SOC 1 audit then, organizations should strive to meet COSO's three objectives for internal control: operations, reporting, and compliance.
Which of the following is an objective of internal control quizlet?
What are the objectives of internal control? Safeguard assets (protect from theft), encourage employees to follow company policies and laws/regulations (ex. workplace safety), promote operational efficiency, ensure accurate reliable accounting records.
What are the four 4 broad objectives of internal control?
Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the ...
What are the 4 types of internal controls?
Preventive Controls Separation of duties. Pre-approval of actions and transactions (such as a Travel Authorization) Access controls (such as passwords and Gatorlink authentication) Physical control over assets (i.e. locks on doors or a safe for cash/checks)
What is the purpose of internal controls quizlet?
What is the purpose of an Internal Control System? Protect assets, establish reliable accounting, promote efficient operations, and urge adherence to company policies.
Which of the following are principles of internal control quizlet?
What are the six principles of internal control? Establishment of Responsibility, Segregation of duties, Documentation of procedures, physical controls, independent internal verification, and human resource controls.
What are the 5 internal controls?
There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.
What are the 3 types of internal control?
Internal controls are policies, procedures, and technical safeguards that protect an organization's assets by preventing errors and inappropriate actions. Internal controls fall into three broad categories: detective, preventative, and corrective.
Which of the following is not the objective of internal control system?
The answer is b. Overstate liabilities in order to be conservative.
What are the 7 internal control procedures?
What are the 7 internal controls procedures?Separation of duties.Access controls.Physical audits.Standardised financial documents.Periodic trial balances.Periodic reconciliations.Approval authority.
Which of the following is not a type of internal control?
Answer: c. Collusion refers a group of individuals coming together for the purpose of achieving a goal through engagement in deceitful or fraudulent behaviors. Internal controls are designed to prevent such behaviors from happening within the organization. Hence, collusion is not a type of internal control.
What are internal controls examples?
Examples of Internal ControlsSegregation of Duties. When work duties are divided or segregated among different people to reduce the risk of error or inappropriate actions.Physical Controls. ... Reconciliations. ... Policies and Procedures. ... Transaction and Activity Reviews. ... Information Processing Controls.
What is not an objective of internal control?
Internal control procedures do NOT include: control environment. The objectives of internal control do NOT include. strong control environments.
What is the purpose of internal control?
The primary purpose of internal controls is to help safeguard an organization and further its objectives. Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
Which of the following is an element of internal control?
There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.
Which of the following is not an element of internal control?
The correct option is (c) behavior analysis. It is not considered an element or a component of internal control as it is concerned with analyzing the behavior of individuals which can lead to better management of challenging behavior and also provides individualized assessments.