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Worksheets11ACC internal control quiz #2
Total questions: 10
Worksheet time: 5mins
Tick all of the relevant principles of internal control
Reliable, competent personal
Authentication
Authorisation
Rational
Identify the principle of internal control that applies: a manager approves a purchase order for inventories that was created by a staff member.
Verification
Authorisation
Physical controls and security
Reliable, competent personal
Video surveillance, after-hours security, locks and alarm systems are all examples of:
Physical controls and security
Authorisation
Responsibility
Verification
Identify the principle of internal control that is missing: work vehicles are often very low on petrol and sometimes the registration is expired.
Verification
Separation of duties
Responsbility
Physical controls and security
Identify the principle of internal control that is missing:
The manager suspects one staff member has been ordering goods for personal use and making sure she is the person who receives the goods when they arrive in the warehouse so she can take them home before anyone else knows the goods have arrived.
Authorisation
Verification
Adequate and accurate documents and records
Separation of duties
Comparing the inventory ledger account with the actual level of stock on hand is an example of:
Verification
Authorisation
Reliable, competent personal
Physical controls and security
Multiple staff have been completing purchase orders for inventory, resulting in over-ordering of inventories and wastage due to these items going off. Identify two principles of internal control that need to be used to address this issue.
Responsibility
Verification
Authorisation
Separation/rotation of duties
Identify two businesses you would recommend to placing a freeze on their credit.
Brandon Ltd
Adams & Sons
K Bryan
T C Band Ltd
Identify two internal controls that you could recommend to encourage debtors to pay on time, i.e. before the 30 days.
Offer early payment discounts
Charge late penalty fees
Stop allowing credit
Provide easy and convenient methods of payment
All of the following are reasons for having internal controls if offering credit, except for?
Offering credit maximises profitability
Appropriate internal controls maximise cash flow.
Accounts receivable should be paid on time and in full.
Debts that are 60 days and older are far more likely to become bad debts.
