Question 1  Internal controls assure achievement of an...

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Question 1 Internal controls assure achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations, and policies. According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), internal control has five components: the control environment, risk assessment, information and communication, control activities, and monitoring processes. Businesses will generally be required to perform an audit at least once a year on all of its financial reports and internal controls, including those controls associated with cash. Three common types of internal controls for cash include bank reconciliations, voucher systems, and electronic funds transfers (EFT). Question 2 North Paddy Bhd Bank Reconciliation Statement As at 31 st October 2015 RM RM Balance per bank statement 34,022.50 Add: Deposit in transit 4,680.75 Bank error: Vivo Enterprise 3,000 7,680.75 41,703.25 Deduct: Outstanding cheque (1,381.25) Correct Cash Balance 40,322 Balance per books 33,822

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