Internal Control Assessment Is Important Because It Governs the _______

question 4

Short Answer

Internal control assessment is important because it governs the _______, _______ and _______ of substantive procedures.

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Definitions:

Historical Cost

The original monetary value of an asset or liability, recorded at the time of its acquisition or incurrence.

Fair Values

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

European Companies

Firms based in one of the countries in Europe, subject to the region's regulatory, economic, and market conditions.

General Journal

A comprehensive accounting record of all transactions made by a company, listed in chronological order before posting to accounts in the general ledger.