specific transaction cycles

Question 1

transaction cycles

Answer 1

a group of homogenous transactions

main cycles are

revenue receipts

expenditure disbursements

payroll

Question 2

internal control consists of 5 interrelated components

Answer 2

control environment
risk assessment
information and communication systems
control activities
monitoring

Question 3

control activities

Answer 3

control activities are the policies and procedures that help ensure that management and directives are carried out- SCARE

Segregation of Duties

Controls (Physical Controls)

Authorization

Review (For performance review)

EDP/IT (for information processing)

Use SCARE to determine Strengths and Weakness in internal control Design and Effectiveness