Question

control procedure
proper approvals
adequate records
limited access
comparison + compliance monitoring
control environment
why is it important?
allows for cross - checking by other people and departments.
allows the company to provide an audit trail later for internal or external auditors.
auditors can monitor a companys actions and its financial statements.
each company must evaluate its own risks, based upon its particular line of business.
every important duty must be staffed by a competent and honest person.
no transaction should be processed without managements general or specific approval.
only authorized individuals are allowed access to the assets and records of the company.
top managers control the workload of employees.
top managers distribute information to customers and employees.
top managers must set the \tone at the top\ to establish a control environment.

Explanation:

• Proper approvals: Ensures no transaction is processed without management's approval.
• Adequate records: Allows for an audit trail for auditors.
• Limited access: Only authorized individuals access assets/records.
• Comparison + compliance monitoring: Enables cross - checking and auditor monitoring.
• Control environment: Top managers set the tone, and each company evaluates risks.

Answer:

• Proper approvals: No transaction should be processed without management’s general or specific approval.
• Adequate records: Allows the company to provide an audit trail later for internal or external auditors.
• Limited access: Only authorized individuals are allowed access to the assets and records of the company.
• Comparison + compliance monitoring: Allows for cross - checking by other people and departments; Auditors can monitor a company’s actions and its financial statements.
• Control environment: Each company must evaluate its own risks, based upon its particular line of business; Top managers must set the “tone at the top” to establish a control environment.