Why do companies need internal control?

Q: What is an agent, and what is a principal? Whatkinds of situations in companies give rise to…

A: Agent: The agent is the person authorized by the principal or business to act on behalf of them.…

Q: Identify each of the following as a (a) purpose of an internal control system, (b) principle of…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What factors influence a company’s WACC?

A: Weighted average cost of capital (WACC): It may be an estimation of the cost of capital of a company…

Q: What is management fraud?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: What is management’s responsibility for reporting on internal control over financial reporting?

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: How could companies avoid entering into ethical conflicts in the global environment?

A: Ethical aspects have to be considered and applied by all the organizations; so that, the business…

Q: why there is material uncertainty in the company?

A: There are several problems which are faced by the companies for both internal sources and external…

Q: Defining internal control Internal controls are designed to safeguard assets, encourage employees to…

A:

Q: How would you define business ethics?

A: Business ethics: Business ethics is a practice of suitable commercial rules concerning possibly…

Q: Even though technology has improved the internal control structure of a company, a supervisor cannot…

A: Internal control: It is a set of controls that ensure the smooth and effective management of the…

Q: Which of the following is not part of the definition of internal control? Separation of duties…

A: Explanation:

Q: Explain two ways organisations can use corporate disclosure policy to maintain or regain…

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…

Q: What challenges does functional diversity represent for the business environment?

A: Introduction: A business environment is a confluence of internal and external elements and forces…

Q: What contribution can non-financial performance management make to our understanding of management…

A: The non-financial performance  measures give you the information on a company’s performance in…

Q: taining in

A: Managerial Responsibilities entail being in charge of the overall management of a work unit (or…

Q: How does the enterprise risk management influence the internal control detective identified?

A: Introduction: Control is a managerial function that aids in measuring actual performance by…

Q: How can confidential data and information be kept confidential and yet still be available to…

A: Management information system (MIS): A management information system (MIS) is a computerized system…

Q: Should firms behave ethically?

A: In order to survive in the competitive market for a very long period of time the business firms are…

Q: 1. Why should corporate governance be in place?

A: Corporate governance refers to the relations, mechanisms as well as processes collection that is…

Q: What is the role of a corporate computer services department? How does this differ from other…

A: Corporate computer services department refers to that department which furnishes the technical…

Q: Can you give me interview questions about internal control of a company?

A: Internal Control:   Internal control, as defined by accounting and auditing, is a process for…

Q: Why is it important for a company to operate cross-functionally?

A: Solution- Importance of cross-functional:  1-It is important for a company to operate…

Q: Internal control procedures are important in every business, but at what stage in the development of…

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives…

Q: what is Strategic Systems Auditing and how it apply to the company?

A: Strategic System Auditing While adopting the strategic system auditing procedures which helps to the…

Q: Which of the following is true of internal​ control?         A. Internal control procedures tend to…

A: Internal control  is implemented  in organizations  by management

Q: What is a social contract and how does it relate to organisational legitimacy? and Explain two ways…

A: A social contract refers to a way in which a business interacts with society. As per social contract…

Q: ways on how to avoid conflict of interest in an organization.

A: Conflict of interest in an organization arises when the management and the employees do no share…

Q: What is the possible agency conflict between inside owner/managers andoutside shareholders?

A: Agency conflict: The conflict of interest of two parties one which is the principal and other which…

Q: What problems do companies face in designing and managing their channels?

A: Distribution channel is the chain in which the final customers receive the products or purchase the…

Q: Is  a rule of Contra Proferentum defensible in today’s business environment? Explain with example

A: Meaning: It is a legal doctrine in contract law which states that any clause considered to be…

Q: What can be done by a business to mitigate: Execution risk Technology risk Reputation risk…

A: Risk management  Risk management is the identification, evaluation, and prioritization of risks…

Q: Which of the following are characteristics of economic agents?a. They participate in economic…

A: Economic Event:   Economic event means events which include transferring the ownership of resource…

Q: Why is ethical behavior important to business?

A: Ethics: Ethics is a system of acceptable beliefs to control behavior and activities that are…

Q: What types of circumstances would encourage management to establish a complex organizational…

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: Why is hedging relevant for a company?

A: Hedging represents the strategy of risk management in order to offset the losses associated with the…

Q: Why are internal accounting controls important to a business? What are advantages vs. the…

A: Internal control refers to a systematic procedure to be followed by the personnels of a company to…

Q: how does the existence market for corporate control affect firm performance?

A: Market for corporate control: When the resources of the company are not utilized to its fullest…

Q: What key control concept was missing at Argus Productions?

A:

Q: What is the most important reason for an organization to use enterprise riskmanagement?

A: Accounting information systems (AIS) collect and process transaction data before distributing…

Q: How do you resolve conflict of interest in an organization?

A: An organisation operates with individuals having different beliefs, tendencies and backgrounds.…

Q: Why is a system of internal control not able  to overcome collusion by employees?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Use the opportunistic perspective of PAT to explain the potential for managers to manipulate…

A: SOLUTION- POSITIVE ACCOUNTING THEORY (PAT) PREDICTS THAT PROCESSES CAN BE PLACED IN PLACE ON AN…

Q: Which of the following is not part of the definition of internal control? a. Separation of duties b.…

A:

Q: How can board members and senior managers actually monitor and control ethical behavior in a…

A: Ethical Behavior Ethical behavior is considered to be one of the important aspect of the business…

Q: The potential conflicts between owners and managers in a company

A: Owners are shareholders who own the company. Managers are employed by the company to act on behalf…