ACCT 401 SEU What Are the Components of Internal Control Explain Each Component Ques

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Business Finance

ACCT 401

Saudi electronic university

ACCT

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No plagiarism. matching ratio should not exceed 5%.

I want new text answer, not copied or rephrased.

IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides or fellow student.

Requirements:

Follow APA-style referencing.

Use Times New Roman (size 12, double-spaced) font.

Q1- What are the Components of Internal Control? Explain each component. (2.5 points).

Q2- How would an auditor identify related parties and what is the importance of doing so. (0.5 point).

Q3- During the audit of Bader Financial, you find that some accounting entries have been Changed. You believe this may be the result of management fraud and you have determined that the effect of this could be material to the financial statements. What steps should you take in response to the accounting entries and your concern about management fraud. Detail your answer. (1.5 points)

Q4- During the audit of Bader Financial, you find that some accounting entries have been Changed. You believe this may be the result of management fraud and you have determined that the effect of this could be material to the financial statements. What steps should you take in response to the accounting entries and your concern about management fraud. Detail your answer. (1.5 points).


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College of Administrative and Financial Sciences Assignment (1) Deadline: End of Week (6) @ 23:59 Course Name: Auditing Principles and Procedures Student’s Name: Course Code: ACCT401 Student’s ID Number: Semester: 2nd CRN: Academic Year: 1441/1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: #/5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism. • Submissions without this cover page will NOT be accepted. Assignment Question(s): (Marks 5) IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides or fellow student. 1-What are the Components of Internal Control? Explain each component. (2.5 points). 2- How would an auditor identify related parties and what is the importance of doing so. (0.5 point). 3- During the audit of Bader Financial, you find that some accounting entries have been Changed. You believe this may be the result of management fraud and you have determined that the effect of this could be material to the financial statements. What steps should you take in response to the accounting entries and your concern about management fraud. Detail your answer. (1.5 points). 4- Explain the importance of observing physical inventory during an audit. (0.5 point)
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College of Administrative and Financial Sciences

Assignment (1)
Deadline: End of Week (6) @ 23:59
Course Name: Auditing Principles and
Procedures

Student’s Name:

Course Code: ACCT401

Student’s ID Number:

Semester: 2nd

CRN:
Academic Year: 1441/1442 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: #/5

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.

Assignment Question(s):

(Marks 5)

IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides or fellow
students.

1-What are the Components of Internal Control? Explain each component.

(2.5

points).
Components of internal control are the most significant elements within an organization. They help
the organization in attaining its objectives, goals, and mission. Management of the business is
accountable for designing the implementation and maintenance of the business’s internal control.
There are several components of internal control, which include the following:
1. Control environment: control environment is the foundation of the other components of
internal control. It provides discipline and structure to the organization. The control
environment includes several factors of the organization, including ethical issues and
integrity, human resources and procedure, organization structure, management, operating
style, responsibility, and assignments.
2. Risk assessment: risk assessment is assessing the prospects that hinder the organization from
attaining its goals. Getting the right causes of risk can help the management to palliate and
handle the risks.
3. Control activities: these are the blueprints that certify that the management’s directives are
put into place. The most important activity in control activity is the scheduling of the duties
in the organization.
4. Information and communication: this passing of the information promptly to allow the
personnel to perform cores. For example, when the financial statement is brought to the table
in time, the management can learn the business’s progress and predict future margin changes.
5. Monitoring: monitoring is the crucial role of the management in the internal control of the
organization. Management is responsible for monitoring and control of the general business
operations. When the business operations are well monitored and controlled, the business is
likely to attain its objectives.

2- How would an auditor identify related parties, and what is the importance of doing
so. (0.5 point).

A related party is an entity related to the entity preparing the organization’s financial statement. An
auditor will know related parties when:
1. The entity and reporting entity belong to the same group.
2. When an entity is an associate of the other entity.
3. When both intensities are ventures of the third party.
4. When one entity is a venture of the third party and the other is partially a third-party venture.
5. Takin part in auditing the financial statement of an organization.
The importance of knowing related parties is that there will be rare frauds in the financial statements.
It may also affect the evaluation of an entity’s workflow and the entity risks and opportunities by the
financial statement users.

3- During the audit of Bader Financial, you find that some accounting entries have
been Changed. You believe this may be the result of management fraud, and you have
determined that the effect of this could be material to the financial statements. What
steps should you take in response to the accounting entries and your concern about
management fraud? Detail your answer. (1.5 points).
1. The first step is describing a...


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