1. Internal control is:A) The act of stealing a business\u2019 assets<\/p>\n
B) The preparation of fraudulent financial statements<\/p>\n
C) The process that helps a business achieve its objectives such as operating efficiently and effectively<\/p>\n
D) The reconciliation of the bank\u2019s cash balance to the book\u2019s cash balance2.<\/b>Separation of duties refers to separating all of these functions exceptA) Authorizing transactions<\/p>\n
B) Keeping accounting records<\/p>\n
C) Hiring personnel<\/p>\n
D) Maintaining custody of assets3.<\/b>Which of the following is not a control activity?A) Mandatory vacations<\/p>\n
B) Risk assessment<\/p>\n
C) Security measures<\/p>\n
D) Proper authorization4.<\/b>Which of the following is NOT a factor in the fraud triangle?A) Perceived Pressure<\/p>\n
B) Rationalization<\/p>\n
C) Perceived Risk<\/p>\n
D) Perceived opportunity5.<\/b>The entry to replenish a petty cash fund includesA) debits to various expense accounts and a credit to Petty Cash Fund<\/p>\n
B) debits to various expense accounts and a credit to Cash<\/p>\n
C) a debit to Petty Cash Fund and a credit to Cash<\/p>\n
D) a debit to Cash and a credit to Petty Cash6.<\/b>A company may be limited in their internal control procedures because the cost of hiring enough people to implement the procedures:A) outweighs the benefits of the system. <\/p>\n
B) has nothing to do with the effectiveness of the internal control system. <\/p>\n
C) can prevent collusion. <\/p>\n
D) can limit employee distractions. 7.<\/b>Which element of internal control deals with establishing procedures for things such as handling of incoming checks?A) Monitoring <\/p>\n
B) Control environment <\/p>\n
C) Control activities <\/p>\n
D) Risk assessment 8.<\/b>Which element of internal control deals with identifying weaknesses of the internal control system?A) Monitoring <\/p>\n
B) Control environment <\/p>\n
C) Information and communication <\/p>\n
D) Risk assessment 9.<\/b>To arrive at an accurate balance on the bank reconciliation statement, deposits in transit should be:A) Added to the bank statement balance<\/p>\n
B) Added to the book balance<\/p>\n
C) Deducted from the bank statement balance<\/p>\n
D) Deducted from the book balance10.<\/b>A firm appropriately wrote a check for $87 but entered the amount as a payment of $96. On the bank reconciliation statement this error would be shown asA) A deduction of $9 from the bank statement balance<\/p>\n
B) An addition of $9 to the bank statement balance<\/p>\n
C) A deduction of $9 from the book balance<\/p>\n
D) An addition of $9 to the book balance<\/p>\n","protected":false},"excerpt":{"rendered":"
1. Internal control is:A) The act of stealing a business\u2019 assets B) The preparation of fraudulent financial statements C) The process that helps a business achieve its objectives such as operating efficiently and effectively D) The reconciliation of the bank\u2019s cash balance to the Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53066","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/53066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=53066"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/53066\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=53066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=53066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=53066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}