Quiz on Ethics and Internal Control

Who needs accounting information to determine if the business is making a profit or loss?

• Employees

• Financial institutions

• Owner of the business

• Competitors

What does the South African Revenue Service (SARS) ensure?

• That annual profit is recorded correctly

• That employees are treated fairly

• That creditors are paid on time

• That businesses are profitable

What is the main purpose of corporate governance?

• To increase profits

• To control and manage the business

• To hire new employees

• To reduce expenses

What does ethical conduct mean?

• Acceptable code of conduct

• Keeping secrets

• Following the law

• Making profits

What is one of the basic principles of ethics?

• Profit maximization

• Leadership

• Cost reduction

• Market expansion

What does transparency in a business mean?

• Only sharing information with shareholders

• Keeping secrets from employees

• Reporting all relevant information honestly

• Hiding information

What is the purpose of internal controls?

• To increase sales

• To reduce the risk of losses

• To hire more employees

• To expand the business

What is a preventive internal control?

• Checking cash register slips

• Issuing cash invoices

• Recording transactions

• Deter actions from happening

What should be done before granting credit to a debtor?

• Record the transaction

• Send a statement of account

• Issue a cash invoice

• Check their creditworthiness

What is the purpose of an asset register?

• To track employee performance

• To monitor sales

• To record details of fixed assets

• To manage cash flow