Financial Information
internal control quiz and cash quiz…?
Question : internal control quiz and cash quiz…?
Select the most correct answer.
31.Which of the following is NOT a control activity?
a.financial reporting
b.performance reviews
c.documentation procedures
d.segregation of duties
32.For internal controls to be most effective, how many people should be responsible for a given task?
a.1
b.2
c.3
d.This depends on the size of the company.
33.The internal audit function is only effective when
a.control tasks are properly performed.
b.the results of an internal audit are reported to senior management and/or the company’s owners.
c.performance reviews are carried out on a regular basis.
d.reports are filed with the CICA.
34.Internal control helps an organization achieve all of the following EXCEPT
a.reliable financial reporting.
b.compliance with relevant laws and regulations.
c.absolute assurance that fraud will not occur.
d.effective and efficient operations
35.Internal controls are not designed to safeguard assets from
a.natural disasters.
b.employee theft.
c.robbery.
d.unauthorized use.
36.Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of
a.inadequate internal control.
b.duplication of effort.
c.performance reviews.
d.segregation of duties.
37.Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them
a.increases the potential for errors and fraud.
b.decreases the potential for errors and fraud.
c.is an example of good internal control.
d.is a good example of safeguarding the company’s assets.
38.The custodian of a company asset should
a.have access to the accounting records for that asset.
b.be someone outside the company.
c.not have access to the accounting records for that asset.
d.be an accountant.
39.Internal auditors
a.are hired by CA firms to audit business firms.
b.are employees of the Canada Revenue Agency who evaluate the internal controls of companies filing tax returns.
c.evaluate the system of internal controls for the companies that employ them.
d.cannot evaluate the system of internal controls of the company that employs them because they are not independent.
40.When two or more people get together for the purpose of circumventing prescribed controls, it is called
a.a fraud committee.
b.collusion.
c.a division of duties.
d.bonding of employees.
internal revenue audit
Best answer:
Answer by Tom Brown
The most correct answer (the one that is correct the most times) is a.
31. Which of the following is NOT a control activity?
b. performance reviews
32. For internal controls to be most effective, how many people should be responsible for a given task?
d. This depends on the size of the company.
33. The internal audit function is only effective when
b. the results of an internal audit are reported to senior management and/or the company’s owners.
34. Internal control helps an organization achieve all of the following EXCEPT
c. absolute assurance that fraud will not occur.
35. Internal controls are not designed to safeguard assets from
a. natural disasters.
36. Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of
d. segregation of duties.
37. Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them
a. increases the potential for errors and fraud.
38. The custodian of a company asset should
c. not have access to the accounting records for that asset.
39. Internal auditors
c. evaluate the system of internal controls for the companies that employ them.
40. When two or more people get together for the purpose of circumventing prescribed controls, it is called
b. collusion.