The Person In Charge Of Controlling The Asset Should Not Be The Same Person That Records Transactions Involvin?

1) The person in charge of controlling the asset should not be the same person that records transactions involving the asset.
True
False
2) Bonding does not discourage loss from theft because employees know that bonding is an insurance policy against loss from theft.
True
False
3) Bob manages the physical custody of a firm’s cash, and his wife, Mary, records all transactions involving cash. This is a good example of segregation of duties.
True
False
4) The characteristics of workplace fraud include:
rev: 06_28_12
secret activities.
violation of employee’s responsibility to employer.
direct or indirect benefit to employee.
costs the employer money.
All of these.
5) The impact of technology on internal controls includes:
More efficient separation of duties.
Elimination of the need for regular audits.
Elimination of the need to bond employees.
Reduced processing errors.
Elimination of fraud
6) The internal document prepared by a department manager that informs the purchasing department of its needs that lists the merchandise needed and requests that it be purchased is the
Purchase order.
Invoice approval.
Receiving report.
Purchase requisition.
Invoice.
7) The principles of internal control include:
Establish responsibilities.
Bond all employees.
Use only computerized systems.
Require automated sales systems.
Maintain minimal records.
8) The use of preprinted forms is an example of which of the principles of internal control?
Division of responsibility for related transactions
Maintaining adequate records
Establishment of responsibilities
Insuring assets and bonding employees
Separate record keeping from custody of assets
9 ) A set of procedures and approvals that is designed to control cash disbursements and the acceptance of obligations is referred to as a(n):
Cash control system.
Internal cash system.
Cash disbursement system.
Voucher system.
Petty cash system.
10) A key factor in a voucher system is that:
Only approved departments and individuals are authorized to incur an obligation that will result in the payment of cash.
Procedures for purchasing, receiving and paying for merchandise are divided among several departments.
The system limits the individuals that can incur cash payment obligations for a company.
It should be extended to all expenses.
All of these.
11) Which of the following effectively enhances our technological controls:
Electronic cash registers.
Check protectors.
Time clocks.
Passwords.
All of the above.
12) When two clerks share the same cash register it is a violation of which internal control principle?
Bond key employees.
Apply technological controls.
Establish responsibilities.
Maintain adequate records.
Insure assets.
13) The principles of internal controls include:
Using technology where appropriate
Separating asset custody and record keeping duties
Performing frequent reviews
Insure assets
All of these

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