Question
Match the description in the right column with the internal control method in the left column. Answer Description 1. Control Environment B? a. A cost/benefit/risk
Match the description in the right column with the internal control method in the left column.
Answer | Description | ||
1. Control Environment | B? | a. A cost/benefit/risk analysis is ordered before a decision is made to use a dangerous chemical in production. | |
2. Risk Assessment | A? | b. Two people are assigned to independently review a payroll report to watch for fraud. | |
3. Control Activities | c. A weekly report of defective material is sent to all plant managers. | ||
4. Info/Communication | C? | d. The CEO believes in the philosophy that tight controls on each aspect of the business can save a company thousands of dollars. | |
5. Monitoring | E? | e. The factory manager is responsible for walking the factory floor daily to determine how internal controls can be improved. |
Match the description in the right column with the information characteristic in the left column. Place the answer in the answer column for each characteristic.
Answer | Description | ||
6. Relevant | a. The report was carefully designed so that the data contained on the report became useful information to the reader | ||
7. Accessible | b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the companys network. | ||
8. Verifiable | c. The data on a report was checked by two clerks working independently | ||
9. Complete | d. An accounts receivable aging report includes all required customer information | ||
10. Reliable | e. The information came from the IT department which has no vested interest in the decision that is made with the information | ||
11. Understandable | f. An accounts receivable aging report was created so it is not difficult to interpret | ||
12.Timely | g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit |
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