List and briefly discuss the five components of internal control.
What will be an ideal response?
1. Control procedures are designed to ensure that the business's goals are achieved.
2. A company must identify its risks. The higher the risk, the more controls a company must put in place to safeguard its assets and accounting records.
3. Controls must be in place within the information system to ensure that only authorized users
have access to various parts of the accounting information system.
4. Monitoring of controls includes the use of internal auditors who ensure the company's employees are following company policies, that the company meets all legal requirements, and that operations are running efficiently. External auditors evaluate the internal controls to ensure that the financial statements are presented fairly in accordance with GAAP.
5. The environment is the culture of the business. The CFO, CEO, and top managers must demonstrate the importance of internal controls. This is a message to all employees to take the internal controls seriously.
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The best time to find out general information about an organization is during the job interview
Indicate whether the statement is true or false
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________ are the prices final customers or users are normally asked to pay for products.
A. Net prices B. Cost prices C. Basic list prices D. Payoffs E. Discounts