Risk and Procedures for Control Paper 5

1

When considering internal control over securities, the auditor is especially concerned about .






2

In a retail cash sales environment, which of the following controls is often absent? .






3

The procedure that would best discourage the resubmission of vendor invoices after they have been paid is






4

Organizational independence in the processing of payroll is achieved by functional separations that are built into the system. Which one of the following functional separations is not required for internal control purposes?






5

An employee should not be able to visit the corporate safe-deposit box containing investment securities without being accompanied by another corporate employee. What would be a possible consequence of an employee being able to visit the safe-deposit box unaccompanied?






6

Which control is not appropriate for property, plant, and equipment?






7

Internal control should follow certain basic principles to achieve its objectives. One of these principles is the segregation of functions. Which one of the following examples does not violate the principle of segregation of functions?






8

If internal control is well designed, two tasks that should be performed by different persons are






9

Which one of the following situations represents an internal control weakness in the payroll department?






10

Which of the following activities represents both an appropriate personnel department function and a deterrent to payroll fraud?






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