Explain the Seven Generally Accepted Objectivof Internal Control Activitiand Identify

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Examlex · Accepted Answer

The Answer is The internal control objectives are matched with the relevant assertions as follows:
Real - there are controls in place to ensure that fictitious or duplicate transactions are not included in the books and records of the organization (occurrence, rights and obligations, and existence assertions).
Recorded - there are controls in place that will prevent or detect the omission of transactions from the books and records of the organization (accuracy, completeness, and valuation and allocation assertions).
Valued - there are controls in place to ensure that the correct amounts are assigned to the transactions (accuracy, and valuation and allocation assertions).
Classified - there are controls in place to ensure that transactions are charged and allocated to the correct general ledger account (accuracy, classification, and valuation and allocation assertions).
Summarized - there are controls in place to ensure that the transactions in the books and records are summarized and totalled correctly (accuracy, and valuation and allocation assertions).
Posted - there are controls in place to ensure that the accumulated totals in the transaction file are correctly transferred to the general ledger and subsidiary ledgers (accuracy, classification, and valuation and allocation assertions).
Timely - there are controls in place to ensure that transactions are recorded in the correct accounting period (cut-off and completeness assertions).

Explain the Seven Generally Accepted Objectivof Internal Control Activitiand Identify

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