Which of the following frameworks is widely used by managers to organize and evaluate their corporate governance structure?
SAS No. 94
Previous PageNext Page
A responsibility that should be assigned to a specific employee and not shared is that of:
attempting to collect a particular delinquent account.
access to the company's safe deposit box.
custodianship of the petty cash fund.
placing orders and maintaining relationships with a prime supplier.
For control purposes, the quantities of materials ordered may be omitted from the copy of the purchase order which is:
forwarded to the accounting department.
forwarded to the receiving department.
returned to the requisitioner.
retained in the purchasing department's files.
Which of the following control procedures provides physical protection for a company's cash asset?
Majority of authorized cash disbursements made by check
Daily cash receipts deposited intact at bank
Voucher system for cash disbursements
all of the above
Which of the following is not a processing control?
If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?
Internal review of controls
Separation of duties
A good audit trail
Which of the following fundamental concepts is stressed by the COSO report?
Internal control is not affected by people.
Internal control is geared to the achievement of a company's objectives in the financial reporting area only.
Internal control is designed to detect all errors and irregularities that occur within a company's system.
Internal control is a process.
A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department's procedures is called a (an):
audit by exception.
Regarding the internal audit function, which of the following statements is true?
Within a company's system, it is preferable to establish the internal audit function as a separate subsystem.
Since many internal auditors have accounting backgrounds, the internal audit function should ideally be included within a company's accounting subsystem.
Because of the independence of external auditors, they should never accept previous work of evaluating controls performed by a company's internal auditors.
It is not proper for internal auditors to perform a fraud investigation within any part of their company's system.
Which of the following is not a subcategory of input controls?
Observation, recording and transcription of data
Additional input controls