Unit 4 part 1

Front

Which of the following it’s not a primary objective of internal controls?
The reliability of financial reporting,
Prevention and detection of fraud,
Safeguarding of assets,
Profit maximisation for management

Back

Profit maximisation for management

Front

The cycle refers to the series of steps and organisation takes to purchase goods or services, manage them, and make payments.

Back

Purchasing

Front

Which of the following is not a characteristic of an effective internal control system? Clear delegation of duties, Regular monitoring of control controls, Adequate segregation of duties

Back

Management override of controls

Front

An internal control system should ensure the of assets to prevent an authorised access or theft.

Back

Safeguarding

Front

The control environment involves the policies and procedures set by an entity’s board of directors and management to maintain effective controls.

Back

True

Front

Which of the following is an inherent limitation of internal control? Proper segregation of duties, Potential for human error, Efficient risk assessment process, Availability of audit trails

Back

Potential for human error

Front

In the payroll cycle, who is primarily responsible for verifying the accuracy of employee pay?

Back

The payroll manager

Front

Which risk is involved in the payroll function when an authorised personal can make changes to payroll data?

Back

Fraud risk

Front

Which of the following is an inherent limitation of internal controls? A high cost for implementing controls, Complete elimination of fraud, Only experienced employees making decisions, Potential for control procedures becoming updated

Back

Potential for control procedures becoming updated

Front

An internal control system designed to prevent fraud may include , where duties are divided so that no one individual controls all aspects of a transaction

Back

Segregation of duties