All business transactions and relationships can be expressed in terms of money.
What is Monetary Unit Assumption?
100
This document includes all initial requests from external auditors.
What is a PBC list?
100
This COSO principle requires the organization to demonstrate a commitment to integrity and ethical values.
What is Control Environment?
100
This action should always have a second-level reviewer and supporting documentation before finalized.
What is posting a journal entry?
200
An estimate of services already received but not yet billed by the vendor.
What is an accrued expense?
200
Expenses should be recognized and recorded when those expenses can be matched with the revenues those expenses helped to generate.
What is the Matching Principle?
200
An error identified by an auditor.
What is an audit finding?
200
This COSO principle requires ongoing evaluations to ascertain whether the components of internal control are present and functioning.
What is Monitoring Activities?
200
These modules "under" the ledger should be reconciled every month to the general ledger without exception.
What are subledgers (AP & AR)?
300
This has occurred when the carrying value of an asset is greater than its fair value.
What is asset impairment?
300
One should always err on the most conservative side of any transaction.
What is the Conservatism Principle?
300
This document asserts to the auditors that management has prepared its financial statements in accordance with US GAAP.
What is the Management Representation Letter?
300
Arbitrary or purely rotational control assessments violate this COSO principle.
What is Risk Assessment?
300
Certain accounts may not be reconciled on a monthly basis due to this factor.
What is materiality or static?
400
This type of revenue recognition requires support for Vendor Specific Objective Evidence (VSOE) (but not so under the new Revenue Recognition guidance!).
What is Multiple Element Arrangements?
400
Revenue should be recognized and recorded when it is realized or realizable and when it is earned (not billed).
What is the Revenue Recognition Principle?
400
Auditors report directly to them.
What is those charged with governance (Audit Committee)?
400
Inadequate accounting systems violates this COSO principle.
What is Information and Communication?
400
These accounts must be eliminated each reporting period so as not to overstate Revenue, Expenses, Assets or Liabilities.
What are intercompany accounts?
500
This type of lease will become obsolete under the new Lease Accounting standard, unless the lease is less than 12 months.
What is an operating lease?
500
Companies should use the same accounting treatment for similar events and transactions over time.
What is the Consistency Principle?
500
A breach in internal controls so significant it is reported to those charged with governance.
What is Significant Deficiency or Material Weakness?
500
Timely GL reconciliations, second-level review of journal entries, and adequate supporting documentation are examples of this COSO principle.
What is Control Activities?
500
Submission of this file is the final step in the monthly close process and provides Koniag with financial information to consolidate the financial statements.