1. (Learning Objective 2: Describe components of internal control) List the components of internal control. Briefly describe each component.
2. (Learning Objective 2: Explain the objectives of internal control) Explain why separation of duties is often described as the cornerstone of internal control for safeguarding assets. Describe what can happen if the same person has custody of an asset and also accounts for the asset.
3.(Learning Objective 1: Define fraud) Define
Solution
WHAT ARE THE COMPONENTS OF INTERNAL CONTROL?
Internal control consists of the following five interrelated components:
1. CONTROL ENVIRONMENT
Control environment is the attitude toward internal control and control consciousness established and maintained by the management and the employees of an organization. It is a product of management\'s philosophy, style and supportive attitude, as well as the competence, ethical values, integrity, and morale of the organization\'s people. The organization structure and accountability relationships are key factors in the control environment.
Elements of the Control Environment
- Ethical Values and Integrity
- Management
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1- (Learning Objective 2- Describe components of internal control) Lis.docx
1. 1. (Learning Objective 2: Describe components of internal control) List the components of
internal control. Briefly describe each component.
2. (Learning Objective 2: Explain the objectives of internal control) Explain why separation of
duties is often described as the cornerstone of internal control for safeguarding assets. Describe
what can happen if the same person has custody of an asset and also accounts for the asset.
3.(Learning Objective 1: Define fraud) Define
Solution
WHAT ARE THE COMPONENTS OF INTERNAL CONTROL?
Internal control consists of the following five interrelated components:
1. CONTROL ENVIRONMENT
Control environment is the attitude toward internal control and control consciousness established
and maintained by the management and the employees of an organization. It is a product of
management's philosophy, style and supportive attitude, as well as the competence, ethical
values, integrity, and morale of the organization's people. The organization structure and
accountability relationships are key factors in the control environment.
Elements of the Control Environment
- Ethical Values and Integrity
- Management
