Chapter 12 - Internal Control

Question 1

what is the objects of internal control?

Answer 1

1. Safeguard assets 2. Check Accuracy and Reliability of Accounting Data 3. Promote Operational Efficiency 4. Encourage adherence to prescribed managerial policies

Question 2

what is characteristics of internal control?

Answer 2

1. management leadership 2. organizational structure 3. sound practices 4 fixed responsibility 5. limited access 6. competent and trustworthy personal 7. segregation of duties 8. authorization procedures 9. adequate records 10. procedure manuals 11.physical controls 12. budgets and internal reports 13. independent performance checks

Question 3

what is the samples of organizational structure?

Answer 3

job descriptions, procedure manuals, reporting managers

Question 4

what is the samples of sound practices?

Answer 4

bonding employees, mandatory vacation, code of ethics