What are the control activities for the internal controls of cash?
Control Activities, a portion of Internal Controls, are the activities put in place to prevent inaccurate financial reporting activity to occur. They address the inherent, control, and detection risk of financial reporting activity.
Answer and Explanation: 1
Control activities can include the following:
|Type of control||Definition||Example|
|Separation of Duties||Individuals cannot complete a cash transaction by themselves||An individual that approves a cash payment is not also the individual that gives out the cash payment.|
|Accounting System Access Controls||Systems are established that certain individuals have access to their own systems of need, not all systems||The cashier can only access the cash register accounts, not the payable accounts.|
|Physical Audits of Assets||Review of cash assets for accuracy||Review the cash drawer of a cash register|
|Standardized Financial Documentation||Formal reports detail what activity should have occurred in the register for the week.||Reconcile the register to the formal report|
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fromChapter 2 / Lesson 2
Learn about COSO. Understand what the COSO Internal Control Framework is, identify the COSO framework principles, and examine its coverage and activities.