Week 6 - Recap Internal Control Objectives Flashcards
1
Q
What is the first internal control objective?
A
No one person has complete control of a transaction from start to finish
2
Q
What is the second internal control objective?
A
The work of each person involved in accounting for transactions is supervised or checked by someone else
3
Q
What is the first consequence of these objectives?
A
Means that no one should have the opportunity to manipulate accounting information
4
Q
What is the second consequence of these objectives?
A
Means that the risk of material error or mis-statement going undetected is reduced
5
Q
What are designed to ensure internal control objectives are achieved?
A
Control procedures
