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Ch 7. P7-98 Bank Reconciliation - How does a deposit in transit affect the bank reconciliation - How does a debit memorandum affect the bank reconciliation - How do outstanding checks affect a bank reconcilation - How does a check written and paid for $345 affect the accounting records when the check was inaccurately recorded in the accounting records for $354. - How does an NSF check affect the bank reconciliation - How does a credit memo by the bank affect the bank reconcitiation? For which of these entries, are adjustments required in the books of the account owner? The COSO Framework (7) The Committee On Sponsoring Organizations' framework identifies five internal control components: 1. The control environment 2. Risk assessment 3. Control activities 4. Information and communication 5. Monitoring activities 1. The Control Environment (8) - The control environment sets the tone for the organization. - Provides the foundation for all other internal control components - The control environment includes: - Management philosophy and style - Assignment of authority and responsibility - Process for attracting and developing competent employee: - Reward system 2. Risk Assessment (9) - Risk is the possibility that an event will occur that will have a negative impact on the organization. - Risk assessment involves identifying and analyzing relevant risks. - Risk assessment is an ongoing dynamic and iterative process