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

The assurance that processes are performing in an acceptable manner is the focus of which component of internal control?

Control Environment

Risk Assessment

Monitoring

Information and Communication

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Verified step by step guidance

Understand the concept of internal control: Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in operations, reporting, and compliance.

Identify the components of internal control: The five components are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring.

Focus on the Monitoring component: Monitoring involves assessing the quality of internal control performance over time. It ensures that processes are functioning as intended and identifies deficiencies that need correction.

Compare Monitoring with other components: While Control Environment sets the tone, Risk Assessment identifies risks, and Information and Communication ensures proper flow of information, Monitoring specifically focuses on evaluating the effectiveness of processes.

Conclude that Monitoring is the correct answer: Monitoring is the component dedicated to ensuring that processes are performing in an acceptable manner, as stated in the problem.