11) Internal controls are the policies and procedures managers of a firm use to protect the firm’s assets and to ensure the accuracy and reliability of the firm’s accounting records.
12) An example of a preventive control is requiring that all purchases over $1,000 be authorized by upper management.
13) An example of a detective control is requiring that the cash drawer be compared with the sales recorded by the register.
14) An example of a corrective control is requiring that on a regular basis management must follow up on all errors and irregularities identified.
15) Preventive controls are designed to prevent an error or irregularity.
16) An example of a preventive control is to require passwords in order to limit access to the information system.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here