Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

Financial Accounting

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following internal control components is primarily a deterrent to corruption within an organization?

Monitoring Activities

Control Environment

Risk Assessment

Information and Communication

Previous problemNext problem

Verified step by step guidance

Understand the question: The problem is asking which internal control component primarily acts as a deterrent to corruption within an organization. The options provided are Monitoring Activities, Control Environment, Risk Assessment, and Information and Communication.

Review the concept of internal control components: Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in operations, reporting, and compliance. The five components of internal control are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities.

Focus on the role of the Control Environment: The Control Environment sets the tone of an organization, influencing the control consciousness of its people. It includes the integrity, ethical values, and competence of the organization's people, as well as management's philosophy and operating style. This component is critical in establishing a culture that deters corruption.

Compare the other options: Monitoring Activities involves assessing the quality of internal control performance over time. Risk Assessment identifies and analyzes risks to achieving objectives. Information and Communication ensure relevant information is identified, captured, and communicated. While these are important, they do not primarily focus on deterring corruption.

Conclude that the Control Environment is the correct answer: The Control Environment is the foundation for all other components of internal control and is primarily responsible for deterring corruption by promoting ethical behavior and integrity within the organization.