Question :
Multiple Choice Questions
61.Which of the following not one of the : 1258891
Multiple Choice Questions
61.Which of the following is not one of the policies and procedures that make up an internal control system?
A.Protect assets.
B.Ensure reliable accounting.
C.Guarantee a return to investors.
D.Urge adherence to company policies.
E.Promote efficient operations.
62.Managers place a high priority on internal control systems because the systems assist managers in all of the following except:
A.Promoting efficient operations.
B.Protecting assets.
C.Urging adherence to company policies.
D.Ensuring reliable accounting.
E.Assuring that no loss will occur.
63.The principles of internal control include:
A.Separate recordkeeping from custody of assets.
B.Maintain minimal records.
C.Use only computerized systems.
D.Bond all employees.
E.Require automated sales systems.
64.Principles of internal control include all of the following except:
A.Apply technological controls.
B.Maintaining security by having one person track and record assets.
C.Perform regular and independent reviews.
D.Separate recordkeeping from custody of assets.
E.Divide responsibilities for related transactions.
65.A properly designed internal control system:
A.Lowers the company’s risk of loss.
B.Insures profitable operations.
C.Eliminates the need for an audit.
D.Requires the use of non-computerized systems.
E.Is not necessary if the company uses a computerized system.
66.A company’s internal control system:
A.Eliminates the company’s risk of loss.
B.Monitors company and employee performance.
C.Eliminates human error.
D.Eliminates the need for audits.
E.Eliminates the need for managers’ certification of controls.
67.Two clerks sharing the same cash register is a violation of which internal control principle?
A.Establish responsibilities.
B.Maintain adequate records.
C.Insure assets.
D.Bond key employees.
E.Apply technological controls.
68.Which internal control principle prescribes the use of pre-numbered printed checks?
A.Technological controls.
B.Maintain adequate records.
C.Perform regular and independent reviews.
D.Establish responsibilities.
E.Divide responsibility for related transactions.
69.The impact of technology on internal controls includes:
A.Reduced processing errors.
B.Elimination of the need for regular audits.
C.Elimination of the need to bond employees.
D.Elimination of separation of duties.
E.Elimination of fraud.
70.Internal control policies and procedures have limitations not including:
A.Human error.
B.Human fraud.
C.Cost-benefit principle.
D.Collusion.
E.Establishing responsibilities.
