Test 3

Question 1 of 1

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Match the term with its definitio

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the organizational plan and all the related measures adopted by an entity to safeguard assets, encourage employees to follow company policies, promote operational efficiency and ensure accurate and relable accounting records

A committee that provides throught leadership related to enterprise risk management, internal control and fraud deterrence

requires management to review internal control and take responsibility for the accuracy and completeness of their financial reports

oversees the work of auditors of public companies

Control procedures, Risk assessment, Information systems, Monitoring of controls, Environment

Control Procedures

Risk assessment

Information system

Monitoring of Controls

Environment

POS

Cash ratio

The percent of sales method

Percent of Receivables
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controls what must be set in the information system so that only authorized personel or truthful information is allowed

a method of estimating uncollectible receivables that calculates bad debts expense based on a percentage of net credit sales. Bad debts expense=net credit sales X %

Sarbanes-Oxely Act

The components of Internal control

a method of estimating uncollectible receivables by determining the balance of the allowance for bad bebts account based on a percentage of accounts receivable. Target balance=ending balance of accounts receivable X %

are designed to ensure that the business's goals are achieved

a measure of a company's ability to pay current liablities from cash and cash equivalents (cash + cash equivalents)/Total current liablities

is when a company identifies its risks

the culture of the business, which starts with top management, who lead by example

Internal control

includes when companies hire auditors to monitor their controls. Internal and external auditors are included in this process

terminal wihich provides control

Committee of Sponsoring Organizations

Public Compnay Accounting Oversight Board