nternal control can be divided into five components. One of these components is referred to as control activities. Select the alternative that would be classified as a CONTROL ACTIVITY.a.Daily bank reconciliations are performed, and differences are immediately resolved.b.An accounting system exists that aims to produce accounting reports that are valid, accurate and complete. c.A risk assessment unit operates within the organisation.d.A formal policy exists in which the ethical values and integrity of management and employees are stipulated.

Describe control objectives, control procedures, control activities, direct controls, indirect controls and tests of control in relation to:The sales systemThe purchases systemThe payroll systemThe inventory systemThe bank and cash systemNon-current assets

Internal controls are concerned withGroup of answer choicesonly manual systems of accounting.the extent of government regulations.safeguarding assets.preparing income tax returns.

When duties cannot be segregated, the most important internal control procedure isSelect one:a.independent verificationb.supervisionc.accounting recordsd.access controls

Describe and explain the five components of internal controlthe control environmentthe entity's risk assessment processthe entity’s process to monitor the system of internal controlthe information system and communicationscontrol activities.

Which one of the following is not an objective of a system of internal controls?Group of answer choicesEnhance the accuracy and reliability of accounting recordsOverstate liabilities in order to be conservativeReduce the risks of errorsSafeguard company assets