1) All of the following are purposes of internal control
except:
A) to safeguard assets
B) to ensure accurate and reliable accounting records
C) to encourage adherence to company policies
D) to promote operational inefficiency
2) Who has the primary responsibility for establishing and maintaining a company's system of internal control?
A) the company's top management
B) the company's internal auditors
C) the company's external auditors
D) the company's shareholders
3) For effective internal control in an organization, who should keep the inventory records?
A) accountant
B) treasurer
C) sales persons
D) inventory warehouse supervisor
4) Which characteristic will
not
be found in an effective system of internal control?
A) a combination of duties
B) a separation of duties
C) competent, reliable, and ethical personnel
D) documents and records
5) Which of the following is a limitation of internal control?
A) safeguarding company assets
B) accurate and reliable accounting records
C) operational efficiency
D) employee collusion
6) Requiring employees to take annual vacations is a part of which characteristic of internal control?
A) proper authorization
B) competent and reliable personnel
C) assignment of responsibilities
D) separation of duties
7) Rotating employees through various jobs is a part of which characteristic of internal control?
A) separation of duties
B) assignment of responsibilities
C) competent and reliable personnel
D) proper authorization
8) One way to guard against a hacker reading a message sent from one company to another over the Internet is to use:
A) a firewall
B) encryption
C) an intrusion protection device
D) an incident response procedure
9) An Internet hacker may sometimes succeed in defeating a company's firewall system and burrow into the company's Web site. Which layer of the onion model of e-commerce system security would the hacker be likely to encounter next?
A) an encryption device
B) an incident response procedure
C) an intrusion detection device
D) another firewall
10) Training people thoroughly is an element of which characteristic of internal control?
A) separation of duties
B) competent, reliable, and ethical personnel
C) assignment of responsibilities
D) proper authorization