Solved

Match Seven of the Terms (A-I)with the Definitions Provided Below

Question 73

Matching

Match seven of the terms (a-i)with the definitions provided below (1-7):

Premises:

Responses:

Management's identification and analysis of risks relevant to the preparation of financial statements in accordance with an applicable accounting framework.

Independent checks on performance

Segregation of the following activities in an organization: custody of assets, accounting, authorization, and operational responsibility.

Control environment

A process designed to provide reasonable assurance regarding the achievement of management's objectives in the following categories: (1)reliability of financial reporting, (2)effectiveness and efficiency of operations, and (3)compliance with applicable laws and regulations.

Specific authorization

Company-wide policies for the approval of all transactions within stated limits.

Monitoring

Policies and procedures that help ensure that necessary actions are taken to address risks in the achievement of the entity's objectives.

Control activities

Management's ongoing and periodic assessment of the quality of internal control performance to determine that controls are operating as intended and are modified when needed.

Separation of duties

The actions, policies, and procedures that reflect the overall attitudes of top management, directors, and owners of an entity about internal control and its importance to the entity.

Internal control

Risk assessment

General authorization

Premises:

Management's identification and analysis of risks relevant to the preparation of financial statements in accordance with an applicable accounting framework.

Segregation of the following activities in an organization: custody of assets, accounting, authorization, and operational responsibility.

Company-wide policies for the approval of all transactions within stated limits.

Policies and procedures that help ensure that necessary actions are taken to address risks in the achievement of the entity's objectives.

Management's ongoing and periodic assessment of the quality of internal control performance to determine that controls are operating as intended and are modified when needed.

The actions, policies, and procedures that reflect the overall attitudes of top management, directors, and owners of an entity about internal control and its importance to the entity.

Responses:

Independent checks on performance

Control environment

Specific authorization

Monitoring

Control activities

Separation of duties

Internal control

Risk assessment

General authorization

Correct Answer:

Premises:

Responses:

Independent checks on performance

Control environment

Specific authorization

Monitoring

Control activities

Separation of duties

Internal control

Risk assessment

General authorization