Risk and Procedures for Control Paper 10

1

The document that is the authorization to initiate the manufacture of goods is referred to as a






2

Internal control cannot be designed to provide reasonable assurance regarding the achievement of objectives concerning






3

Effective internal control






4

A reason to establish internal control is to






5

Internal controls may be preventive, detective, corrective, or directive. Which of the following is preventive?






6

The internal auditor recognizes that certain limitations are inherent in any internal control system. Which one of the following scenarios is the result of an inherent limitation of internal control?






7

The treasurer makes disbursements by check and reconciles the monthly bank statements to accounting records. Which of the following best describes the control impact of this arrangement?






8

The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the prelist going to the cashier and to accounting, is an example of which type of control?






9

A multinational corporation has an office in a foreign branch with a monetary transfer facility. Effective internal control requires that






10

Which of the following describes the most effective preventive control to ensure proper handling of cash receipt transactions?






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