Fraud Internal Control and Cash MCQs

?

Which of the following is an objective of a system of internal controls? Select all that apply.






?

Which of the following statements regarding auditors is true?






?

The custodian of a company asset ___________ have access to the accounting records for that asset.




?

Which of the following is best at providing evidence which helps companies enforce the principle of establishing responsibility?






?

What does the term "bonding" mean when it refers to employees?






?

Identify the example of poor internal control.






?

When a company uses prenumbered checks and requires an approved invoice for each check, it is using which internal control?






?

When should a bank reconciliation be prepared?






?

Which of the following does NOT affect the cash balance per books?






?

________ do NOT require journal entries by the depositor. A : B : C : D :






?

A company can try to _________ inventory as a way of ensuring it has adequate cash.




?

A small company that has excess cash should invest it in a company's stock that is expected to increase in the short term.




?

What does a check marked NSF mean?






?

When would a bank issue a credit memorandum?






?

Cash equivalents are highly liquid investments that are both






?

When a company allows only designated personnel to handle cash receipts, it is applying the internal control principle of






?

A voucher system is a series of prescribed control procedures that are designed to






?

All of the following are considered cash equivalents EXCEPT






?

________ enhance the accuracy and reliability of the accounting records.






?

Checks received in the mail should be immediately stamped "For Deposit Only" to prevent unauthorized cashing of the check.




?

The reconciliation of the cash register tape with the cash in the register _______ an example of independent internal verification.




?

When a company has one bookkeeper preparing the cash deposits while another bookkeeper enters the collections in the journal and ledger, the company i...






?

Supervisors counting cash receipts daily an example of independent internal verification.




?

By designating certain personnel to handle cash receipts, a company is following which principle?






?

Designating the same individual to receive the cash and pay the bills ________ an example of a company following an internal control for cash.




?

An activity that would NOT contribute to the internal control of cash would be






?

Unlike money orders, postdated checks _____ be considered cash.




?

All of the following are internal control activities except






?

Independent internal verification can include






?

When a company has one bookkeeper preparing the cash deposits while another bookkeeper enters the collections in the journal and ledger, the company i...




?

A company practices a type of internal control principle over cash receipts called segregation of duties when it






?

The definition of cash includes all of the following: coins, money on deposit in a bank, and petty cash.




?

To prevent unauthorized cashing, ________ should be stamped on a check as soon as it is received in the mail.






?

What is the reconciliation of the cash register tape with the cash in the register an example of?






?

Combining the functions of record keeping and maintaining custody of cash ______ an internal control activity for cash.