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1. Internal control is: A) The act of stealing a business? 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?s cash balance to the book?s cash balance;2. Separation of duties refers to separating all of these functions except A) Authorizing transactions;B) Keeping accounting records;C) Hiring personnel;D) Maintaining custody of assets;3. Which of the following is not a control activity? A) Mandatory vacations;B) Risk assessment;C) Security measures;D) Proper authorization;4. Which of the following is NOT a factor in the fraud triangle? A) Perceived Pressure;B) Rationalization;C) Perceived Risk;D) Perceived opportunity;5. The entry to replenish a petty cash fund includes A) debits to various expense accounts and a credit to Petty Cash Fund;B) debits to various expense accounts and a credit to Cash;C) a debit to Petty Cash Fund and a credit to Cash;D) a debit to Cash and a credit to Petty Cash;6. 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.;B) has nothing to do with the effectiveness of the internal control system.;C) can prevent collusion.;D) can limit employee distractions.;7. Which element of internal control deals with establishing procedures for things such as handling of incoming checks? A) Monitoring;B) Control environment;C) Control activities;D) Risk assessment;8. Which element of internal control deals with identifying weaknesses of the internal control system? A) Monitoring;B) Control environment;C) Information and communication;D) Risk assessment;9. To arrive at an accurate balance on the bank reconciliation statement, deposits in transit should be: A) Added to the bank statement balance;B) Added to the book balance;C) Deducted from the bank statement balance;D) Deducted from the book balance;10. 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 as A) A deduction of $9 from the bank statement balance;B) An addition of $9 to the bank statement balance;C) A deduction of $9 from the book balance;D) An addition of $9 to the book balance


Paper#78795 | Written in 18-Jul-2015

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