Controls over the period ending reporting process include:
A)procedures to enter transaction totals into the general ledger
B)procedures used to estimate recurring and nonrecurring adjustments to the annual and quarterly financial statements
C)procedures related to the selection and processing of accounting policies
D)procedures used to initiate,authorize,record,and process journal entries in the general ledger
E)procedures for recording annual and quarterly financial statements and related disclosures
F)both A and B
G)both A and C
H)Both A and D
I)both A and E

Question

Quizplus · Accepted Answer

Controls over the period ending reporting process typically include procedures for entering transaction totals into the general ledger (A) and initiating, authorizing, recording, and processing journal entries in the general ledger (D). These two options are the only ones focused specifically on the general ledger and its processes. Option B may be a part of the reporting process, but estimating adjustments could also happen throughout the year. Option C refers to the selection and processing of accounting policies, which is important but not as directly related to the reporting process. Option E refers to recording the financial statements, which is important but not necessarily a control over the period ending reporting process. Therefore, the best choice is H (both A and D).

Controls Over the Period Ending Reporting Process Include