56.An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of
a.establishment of responsibility is violated.
b.independent internal verification is violated.
c.documentation procedures is violated.
d.segregation of duties is violated.
57.Controls that enhance the accuracy and reliability of the accounting records are
a.automated controls.
b.external controls.
c.physical controls.
d.human resource.
58.Related selling activities do
not
include
a.ordering the merchandise.
b.making a sale.
c.shipping the goods.
d.billing the customer.
59.Related purchasing activities include
a.ordering, receiving, paying.
b.ordering, selling, paying.
c.ordering, shipping, billing.
d.selling, shipping, paying.
60.Joe is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates
a.documentation procedures are violated.
b.independent internal verification is violated.
c.segregation of duties is violated.
d.establishment of responsibility is violated.
61.Physical controls to safeguard assets do
not
include
a.cashier department supervisors.
b.vaults.
c.television monitors.
d.security guards.
62.In large companies, the independent internal verification procedure is often assigned to
a.computer operators.
b.management.
c.internal auditors.
d.outside auditors.
63.Maximum benefit from independent internal verification is obtained when
a.it is made on a pre-announced basis.
b.it is done by the employee possessing custody of the asset.
c.discrepancies are reported to management.
d.it is done at the time of the audit.
64.If employees are bonded
a.it means that they are not allowed to handle cash.
b.they have worked for the company for at least 10 years.
c.they have been insured against misappropriation of assets.
d.it is impossible for them to steal from the company.
65.Mrs. Smith has worked for Grand Inc., for 20 years without taking a vacation. An internal control feature that would address this situation would be
a.human resource controls.
b.establishment of responsibility.
c.physical controls.
d.documentation procedures.