What is the idea behind seperation of duties in internal control?
Segregation Of Duties (SOD), is a fundamental building block for sustainable risk management and internal control in a business. SOD is based upon the shared responsibilities of key processes that distributes critical functions to multiple people or departments.
Which of the following would not be considered good internal control for cash receipts?
Which one of these would not be good internal control over cash receipts? To require employees who receive cash from customers to deposit cash in the bank account of the company.
Which one of the following is not an element of internal control?
Therefore, compliance with laws is not an element in internal control as defined by COSO framework. It is an objective of the internal control system.
Which situation indicates a weak internal control structure?
If there is no accounting control, it means that the internal control structure has weaknesses. Ineffective internal controls are often caused by reduced records of transfers between warehouses.
Which of the following describes the environment in internal control?
Which one of these describes the environment for internal control? The “tone at top” of a business’s environment.
What is the purpose of preparing a bank reconciliation?
Bank reconciliations ensure that payments have been processed and that cash collections have been deposited in the bank. To make necessary adjustments or corrections, the reconciliation statement is used to identify any differences between bank balance and bank book balance.
What is the process of bank reconciliation?
To reconcile a bank account statement, the balance reported by the bank and the general ledger for a business are compared. This is to ensure that all items are properly accounted for and that the ending balances match. A reconciliation statement, also known as the bank reconciliation statements, is required to do this.