Table of Contents
- 1 When two employees work together to get around internal controls it is called?
- 2 Which of the following is a method to achieve internal control over cash?
- 3 What is the purpose of internal controls quizlet?
- 4 What is the rationale for the internal control principle known as segregation of duties?
- 5 When two or more individuals may work together to get around prescribed control activities this limitation of internal control is known as?
- 6 Which individuals may be involved in the systems development life cycle?
When two employees work together to get around internal controls it is called?
Collusion occurs when two or more employees work together to make internal controls more effective.
When a company uses internal controls it includes all of the following except?
Principles of internal control include all of the following except: Apply technological controls. Maintaining security by having one person track and record assets.
Which of the following is a method to achieve internal control over cash?
To safeguard cash and ensure the accuracy of the accounting records for cash, effective internal control over cash is critical. Use remittance advice (mail receipts), cash register tapes, and deposit slips. physical controls. Store cash in safes and bank vaults; limit access to storage areas; use cash registers.
Which one of the following is not an objective of a system of internal controls quizlet?
Which one of the following is not an objective of a system of internal controls? Overstate liabilities in order to be conservative. You just studied 20 terms!
What is the purpose of internal controls quizlet?
Internal controls in accounting are procedures that are put in place within an organization to ensure business is carried out in an orderly, effective and accurate manner. They are important for safeguarding any assets that a company has from loss, whether that loss is accidental or intentional.
What is the purpose of an internal control system?
The primary purpose of internal controls is to help safeguard an organization and further its objectives. Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
What is the rationale for the internal control principle known as segregation of duties?
What is the rationale for the internal control principle known as segregation of duties? The work of one employee should, without duplication of effort, provide a reliable basis for evaluating the work of another employee.
Which internal control principle prescribes the use?
Which internal control principle prescribes the use of pre-numbered printed checks? -Technological controls.
When two or more individuals may work together to get around prescribed control activities this limitation of internal control is known as?
collusion
Occasionally two or more employees may work together in order to get around prescribed controls (collusion). Collusion can significantly impair the effectiveness of a system of internal control because it eliminates the protection anticipated from segregation of duties.
What happens when one person is responsible for the activities of ordering receiving and paying for inventory?
Explanation: When one person is responsible for the related activities of ordering merchandise, receiving goods, and paying for them increases the potential for errors and fraud.
Which individuals may be involved in the systems development life cycle?
Cards
| Term Which of the following is a business resource? | Definition Raw Material, Labor, Information |
|---|---|
| Term Which individuals may be involved in the Systems Development Life Cycle? | Definition Accountants, system professionals, and end users |
What are the objectives of a system of internal control?