51.It is unlikely that a company would want to bond its employees who handle cash or inventory.
52.Management's regular assessment of its internal controls is called risk assessment.
53.Under an effective system of internal control, errors occur only as a result of fraud or dishonesty.
54.The separation-of-duties feature of internal control can be negated when several employees are involved in a scheme.
55.A system of internal control cannot be considered good until the possibility of human error has been completely eliminated.
56.The purchasing department prepares a purchase requisition addressed to the vendor (seller) containing instructions related to the items ordered.
57.Another term for an invoice is a bill.
58.One example of a periodic independent verification is the bank reconciliation.
59.In addition to keeping the records of a purchase transaction, the accounting department should prepare and mail checks in payment of invoices.
60.Effective internal control requires a department to purchase supplies on its own.