Control Activities Are Defined as 'The Policies and Procedures, in Addition

question 76

Essay

Control activities are defined as 'the policies and procedures, in addition to those included in the other elements, that help ensure necessary actions are taken to address risks in the achievement of the entity's objectives.' There are five categories of control activities. Please describe the five categories of control activities.

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Definitions:

Debit Balances

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Credit Balances

The total amount of money in accounts that represent a liability or income to a company, opposite of debit balances.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financing activities.

Operating Activities

Activities that are directly related to the primary business operations, such as selling goods and services.