Which principle of the control environment involves...

Which principle of the control environment involves transaction authorization, recordkeeping, and custody of assets? Question 11 options: 1) Accountability for internal control responsibilities 2) Board of director independence 3) Commitment to integrity and values 4) Effective organizational structure

Transcript

00:01 First is the company's computer system track individual's transaction and automatically accumulate transaction to create a trial balance.

00:19 This control represents information and communication component as it involves the use of computer systems to gather and communicate transaction data.

00:30 Second is the company must receive university transcripts documenting all college degrees earned before an individual can begin their first day of employment with the company.

00:41 This control represents control activities component as it involves specific requirement for verifying the qualification of the employees.

00:54 Third is senior management obtains data about external events that might affect the entity and evaluates the impact of that information on its existing accounting process.

01:05 This control represents the risk assessment as it involves the evaluation of external events.

01:19 Fourth is each quarter department managers required to perform self -assessment of the department's compliance with company's policies.

01:27 So this report summarizing the results to be submitted to the senior executive overseeing the department which control represents monitoring.

01:40 Fifth is before a cash disbursement can be processed all payee information must be verified by matching the payee to the company's approved vendor listing.

01:51 This component represents control activities as it involves the procedure for verifying the payee information.

02:06 The system automatically reconciles the detailed accounts receivable subsidiary ledger to the accounts receivable general ledger account on a daily basis...

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