Question

Which element of internal control deals with establishing procedures for things such as handling of incoming checks, and which element deals with the oversight of the internal control systems?

Answer 1

There are five elements in Internal Control of an organization. In establishing procedures for the handling of incoming checks belongs to the element Policies and Procedures and the element that deals with the oversight of the internal control system is the Risk Assessment.

Answer 2

Answer:

The correct answer is:  Control of activities and Risk Assessment.

Explanation:

There are five elements of Internal Control: Control Environment, Risk Assessment, Control Activities, Information and Communication and, Monitoring. Control of activities includes two elements: policy and procedures. They both are in charge of ensuring the effectiveness and efficiency of the operations taking into consideration the quality and financial targets and the preservation of loss-free resources. While Risk Assessment detects and evaluates continuous processes and critical components of an active internal control system.