Question 1

The principles of internal control activities are used

Accepted Answer

A)   in the U.S. but not globally.
B)   internationally but not in the U.S.
C)   in the U.S. and Canada but not globally.
D)   globally.E) B) and D)
F) All of the above

Question 2

Electronic funds transfer (EFT) is a disbursement system that uses a telephone or a computer to transfer cash from one location to another.

Accepted Answer

A) True 
 B)False

Question 3

Maximum benefit from independent internal verification is obtained when

Accepted Answer

A)   it is made on a pre-announced basis.
B)   it is done by the employee possessing custody of the asset.
C)   discrepancies are reported to management.
D)   it is done at the time of the audit.E) All of the above
F) A) and B)

Question 4

The control principle related to not having the same person authorize and pay for goods is known as

Accepted Answer

A)   establishment of responsibility.
B)   independent internal verification.
C)   separation of duties.
D)   rotation of duties.E) B) and C)
F) C) and D)

Question 5

All of the following bank reconciliation items would result in an adjusting entry on the company's books except

Accepted Answer

A)   interest earned.
B)   deposits in transit.
C)   fee for collection of note by bank.
D)   NSF check of customer.E) A) and B)
F) C) and D)

Exam 7: Fraud, Internal Control, and Cash

Electronic funds transfer (EFT) is a disbursement system that uses a telephone or a computer to transfer cash from one location to another.

Correct Answer
verified

Maximum benefit from independent internal verification is obtained when

Correct Answer
verified

The control principle related to not having the same person authorize and pay for goods is known as

Correct Answer
verified

The principles of internal control activities are used

Correct Answer
verified

All of the following bank reconciliation items would result in an adjusting entry on the company's books except

Correct Answer
verified

Exam 7: Fraud, Internal Control, and Cash

Electronic funds transfer (EFT) is a disbursement system that uses a telephone or a computer to transfer cash from one location to another.

Correct AnswerverifiedShow Answer

Maximum benefit from independent internal verification is obtained when

Correct AnswerverifiedShow Answer

The control principle related to not having the same person authorize and pay for goods is known as

Correct AnswerverifiedShow Answer

The principles of internal control activities are used

Correct AnswerverifiedShow Answer

All of the following bank reconciliation items would result in an adjusting entry on the company's books except

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified