Question :
128.A traditional definition of internal control specifically includes all of : 1244375
128.A traditional definition of internal control specifically includes all of the following features, except
a.
maintenance of a clean and safe workplace.
b.
adherence to prescribed managerial policies.
c.
promotion of operational efficiency.
d.
reliability of accounting data.
129.Each of the following is a feature of internal control, except
a.
recording of all transactions.
b.
all payments with cash.
c.
sound personnel policies.
d.
separation of duties.
130.Each of the following is a feature of internal control, except
a.
periodic independent verification.
b.
authorization of transactions.
c.
minimizing rotation of key employees.
d.
limited access to assets.
131.Which of the following attributes of internal control would be violated if the accounting clerk wrote checks to pay accounts payable?
a.
Separation of duties
b.
Adequate design of documents
c.
Sound personnel procedures
d.
Periodic independent verification
132.The bonding of employees is an example of which feature of a good system of internal control?
a.
Separation of duties
b.
Sound personnel policies
c.
Limited access to assets
d.
Authorization of transactions
133.Which of the following would not be found in a good system of internal control?
a.
Establishing a system of checks and balances
b.
Requiring all employees to take earned vacations
c.
Establishing an internal audit staff
d.
Having one person handle all the responsibilities of a department
134.A consequence of a separation of duties is that
a.
theft is possible only when several employees are involved.
b.
operations become extremely inefficient because of constant training of employees.
c.
more employees will need to be bonded.
d.
theft by employees becomes impossible.
135.A very small company would have the most difficulty in implementing which of the following internal control activities?
a.
Separation of duties
b.
Limited access to assets
c.
Periodic independent verification
d.
Sound personnel procedures
136.Internal control is weakened by each of the following, except
a.
effects of changing conditions.
b.
collusion.
c.
separation of duties.
d.
human error.
137.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
a.
holding one person responsible for a given set of transactions.
b.
getting the owner actively involved.
c.
bonding the employees.
d.
hiring only honest employees.
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