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 is an element of the control environment?

Information processing controls

Ongoing monitoring activities

Physical safeguards over assets

Commitment to integrity and ethical values

Previous problemNext problem

Verified step by step guidance

Understand the concept of the control environment: The control environment is the foundation of an organization's internal control system. It sets the tone at the top and influences the control consciousness of its people. Key elements include integrity, ethical values, and the competence of the organization’s people.

Identify the key elements of the control environment: These typically include commitment to integrity and ethical values, management's philosophy and operating style, organizational structure, assignment of authority and responsibility, and human resource policies and practices.

Analyze the options provided: Information processing controls, ongoing monitoring activities, and physical safeguards over assets are components of internal control but are not part of the control environment. They fall under other categories like control activities or monitoring.

Focus on the correct answer: Commitment to integrity and ethical values is a fundamental element of the control environment because it establishes the ethical framework and standards for the organization.

Conclude the reasoning: The control environment emphasizes the importance of ethical behavior and integrity, which are essential for fostering a culture of accountability and effective internal controls.