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

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Multiple Choice

Which of the following is commonly included as a monitoring control within the five components of internal controls?

Segregation of duties among employees

Physical safeguarding of assets

Establishing a code of conduct for employees

Regular internal audits of financial processes

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Verified step by step guidance

Understand the concept of internal controls: Internal controls are processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Learn about the five components of internal controls: These include Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities. Monitoring Activities involve assessing the effectiveness of internal controls over time.

Identify the role of monitoring controls: Monitoring controls are designed to ensure that internal controls are functioning as intended. This includes regular evaluations, reviews, and audits to detect and correct deficiencies.

Analyze the options provided: Segregation of duties, physical safeguarding of assets, and establishing a code of conduct are examples of control activities, not monitoring controls. Regular internal audits, however, are a key example of monitoring controls as they assess the effectiveness of financial processes.

Conclude that regular internal audits of financial processes are commonly included as a monitoring control within the five components of internal controls.