Question

Frank, the head of the accounting department in a manufacturing firm, has established strong internal accounting controls in place. He recently learned that some of the employees are not following the controls despite the instructions that they were given. The employees’ actual performance has thus deviated from their expected performance. Frank plans to identify the cause of such deviation and take corrective action at the earliest. Which element of internal accounting controls relates to Frank’s decision related?

A.
risk assessment
B.
control environment
C.
control procedures
D.
information and communication
E.
monitoring

Answer 1

D. Information and Communication

Answer 2

The correct answer is E: Monitoring

Step-by-step explanation:

The internal accounting control known as monitoring is defined as a business monitoring performance and expecting employees to comply with internal controls. If some employees fail to act accordingly, the business must identify the cause and find a solution.