All categories

3 years ago

Internal control is a process designed to ensure

Business

1 answer:

Sauron [17]3 years ago

8 0

Answer:

Internal Control is designed to ensure all of the items described in the answer.

Explanation:

Internal control refers to the control measures adopted by an entity so as to ensure compliance with legal framework, check frauds and errors and for reliable financial reporting.

Compliance procedures are the processes designed to check whether internal controls exist in an organization and if they do, whether such controls are operating effectively.

For e.g biometric authentication with regard to attendance keeps a check on the number of employees actually working during a period and eliminates the possibility of dummy names in the attendance records. This is an example of internal control i.e control measures created by organization itself.

You might be interested in

An example of an industry especially vulnerable to efforts to protect the environment is the _____ industry.

ANEK [815]

<span>An example of an industry especially vulnerable to efforts to protect the environment is the "asbestos removal" industry.
</span>
The Asbestos Removal Contractors Association, which is abbreviated as ARCA, it was established in 1980 and is an asbestos expulsion exchange relationship for the UK industry. It represents the interests of UK asbestos removal or evacuation temporary workers and the different related asbestos organizations all through the nation.

7 0

3 years ago

Company A has a beta of 0.70, while Company B's beta is 0.80. The required return on the stock market is 11.00%, and the risk-fr

alina1380 [7]

Answer:

the differene in the required rate of return of eahc company is 0.675%

Explanation:

we solve using the CAPM method:

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.0425

market rate 0.11

Company A

beta(non diversifiable risk) 0.7

$Ke= 0.0425 + 0.7 (0.0675)$

Ke 0.08975 = 8.975%

Company B

beta(non diversifiable risk) 0.8

$Ke= 0.0425 + 0.8 (0.0675)$

Ke 0.09650 = 9.65%

difference: 9.65% - 8.975% = 0.675%

5 0

3 years ago

A company uses the retail method to estimate inventories. The following information is for the first six months of the current y

Tanya [424]

Answer:

The correct answer is $240,000.

Explanation:

According to the scenario, given data are as follows:

Beginning inventory at cost = $70,000

Beginning inventory at retail = $100,000

Net purchases at cost = $270,000

Net purchases at retail = $360,000

Total sales = $320,000

According to the LIFO method.

Particulars Cost Retail Cost/Retail Ratio

Beginning inventory $70,000 $100,000 70%

Net purchases $270,000 $360,000 75%

Total Inventory $340,000 $460,000

Total sales $320,000

Ending inventory ( Estimated )

($360,000-$320,000)× 75% $30,000

$70,000 × 70% $70,000

Ending inventory at cost $100,000

Estimated cost of goods sold $240,000.

Hence the correct answer is $240,000.

7 0

3 years ago

Judge Karen, a state appellate court judge, decides that the precedent for the case she is hearing is no longer correct due to t

crimeas [40]

Answer:

Increased publicity

Explanation:

if a judge overturns a case from a trial court and rejects precedent, the judge should get publicity for her decision and modification of the precedent so that it becomes a new way or basis of judging similar cases. In other words if judge Karen decides that the precedent before her to judge the case is outdated as a result of technological changes, she will decide on the case before her based on what she believes the precedent should reflect(new technologies) and this becomes the new basis for judging all such cases and as a result should be publicised for other judges to take note

7 0

3 years ago

g Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patter

Tpy6a [65]

Answer:

d. substitution bias.

Explanation:

Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. The problem this creates for inflation calculations is called substitution bias.

A problem with the Consumer Price Index (CPI) arises from the singular fact that, when the price level of a product becomes relatively less expensive or lower, consumers tend to buy more quantity of the product and consequently, a lesser quantity of goods that are relatively more expensive.

Hence, their spending pattern changes with respect to the prices but it's not completely adjusted with the Consumer Price Index (CPI), thus, making the inflation rate to differ because of the problem of substitution bias.

6 0

3 years ago