WGU C213 Internal Controls Questions with Answers (All Answers Correct)
0 view 0 purchase
Course
WGU C213 Internal Controls
Institution
WGU C213 Internal Controls
What are the various elements of an internal control system? - Answer-Authorization.
Authorizing and approving the execution of transactions
Record keeping. Recording the transactions in the accounting records
Custody of assets. Having physical possession of or control over the assets involved i...
WGU C213 Internal Controls
What are the various elements of an internal control system? - Answer-Authorization.
Authorizing and approving the execution of transactions
Record keeping. Recording the transactions in the accounting records
Custody of assets. Having physical possession of or control over the assets involved in
transactions, including
operational responsibility
What is earnings management? Why does it occur? - Answer-two common ways to
engage in earnings management: (1) modifying operating decisions, such as delaying
expenditures for research and development, and (2) modifying accounting, such as
massaging the timing or judgments
involved in making accounting estimates
frauds - Answer-Result from intentional errors. Fraudulent financial reporting occurs
when management chooses to intentionally
manipulate the financial statements to serve their own
control environment - Answer-consists of the actions, policies, and procedures that
reflect the overall attitudes of top management,
the directors, and the owners about control and its importance to the company
Risk assessment - Answer-Standards establish standards and provide guidance
concerning the auditor's assessment of the risks of material misstatement in a financial
statement audit and the design and performance of audit procedures whose nature,
timing, and extent are responsive to the assessed risks.
control activities - Answer-Control activities or control procedures are those policies and
procedures, in addition to the control environment and
accounting system,
Identify the types of problems that can occur in financial statements. - Answer-Errors,
disagreement, frauds
Errors - Answer-Result when unintentional mistakes are made in recording transactions,
posting transactions, summarizing accounts, and so forth
Disagreement - Answer-Result when different people arrive at different conclusions
based on the same set of facts
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ACADEMICMATERIALS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
