Question :
11. Each of the following a feature of internal control, : 1410856
11. Each of the following is a feature of internal control, except
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a. |
management planning. |
|
b. |
periodic independent verification. |
|
c. |
limited access to assets. |
|
d. |
authorization of transactions. |
12. Which of the following attributes of internal control would be violated if the chief accounting clerk wrote checks to pay accounts payable?
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a. |
Adequate design of documents |
|
b. |
Sound personnel procedures |
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c. |
Periodic independent verification |
|
d. |
Separation of duties |
13. The bonding of employees is an example of which feature of a good system of internal control?
|
a. |
Authorization of transactions |
|
b. |
Sound personnel policies |
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c. |
Separation of duties |
|
d. |
Limited access to assets |
14. Which of the following would not be found in a good system of internal control?
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a. |
Requiring all employees to take earned vacations |
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b. |
Establishing a system of checks and balances |
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c. |
Having one person handle all the responsibilities of a department |
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d. |
Establishing an internal audit staff |
15. A consequence of a separation of duties is that
|
a. |
operations become extremely inefficient because of constant training of employees. |
|
b. |
more employees will need to be bonded. |
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c. |
theft by employees becomes impossible. |
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d. |
theft is possible only when several employees are involved. |
16. A very small company would have the most difficulty in implementing which of the following internal control activities?
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a. |
Sound personnel procedures |
|
b. |
Periodic independent verification |
|
c. |
Limited access to assets |
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d. |
Separation of duties |
17. Internal control is weakened by all of the following, except
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a. |
collusion. |
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b. |
separation of duties. |
|
c. |
human error. |
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d. |
effects of changing conditions. |
18. In a small business, because it is often cost-prohibitive to hire extra employees, the lack of certain separations of duties can best be overcome by
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a. |
bonding the employees. |
|
b. |
getting the owner actively involved. |
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c. |
hiring only honest employees. |
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d. |
holding one person responsible for a given set of transactions. |
19. Which of the following is not an internal control activity for cash?
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a. |
Surprise audits of cash on hand should be made occasionally. |
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b. |
The number of persons who have access to cash should be limited. |
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c. |
The functions of recordkeeping and keeping custody of cash should be combined. |
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d. |
All cash receipts should be recorded promptly. |
20. Which of the following documents is mailed to the vendor (seller) of goods?
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a. |
Receiving report |
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b. |
Invoice |
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c. |
Purchase order |
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d. |
Purchase requisition |
