BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Hiring more employees
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Reconciling bank statements
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Hiring external auditors
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Duplicating records
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Detailed explanation-1: -January 2020 A bank reconciliation is a control activity that compares banking records to accounting records, and ultimately ensures that both sets of records agree with one another. Reconciliations identify unapproved or unallowable activities.
Detailed explanation-2: -Authorization of invoices, verification of expenses, limiting physical access to equipment, inventory, cash, and other assets are examples of preventative internal controls.
Detailed explanation-3: -Internal control is the systems, policies, procedures, and processes effected by the board of directors, management, and other personnel to safeguard bank assets, limit or control risks, and achieve a bank’s objectives.
Detailed explanation-4: -What is Internal Control over Financial Reporting (ICFR or IOCFR)? Internal control over financial reporting (ICFR or ICOFR) is a process consisting of policies and control procedures to assess financial statement risk and provide reasonable assurance that a company prepares reliable financial statements.