Chapter 2: Internal Control Flashcards
1
Q
What is a general ledger?
A
Central database that includes all accounting information that the company works with
2
Q
What is the purpose of internal control?
A
- Safeguard the firms assets
- Ensure operational effectiveness and efficiency
- Ensure reliability of information
- Comply with laws and regulations
3
Q
What are the five components of internal control?
A
- Control environment
- Risk assessment
- Control activities
- Information and communication
- Monitoring
4
Q
What are four control activities?
A
- Segregation of duties
- Physical controls
- Analytical reviews
- Process controls
