8) The treasurer of a company is the chief accounting officer of that company.
9) The chief accounting officer of a company is the:
A) controller.
B) treasurer.
C) external auditor.
D) internal auditor.
10) The company officer who is responsible for writing checks is the:
A) controller.
B) treasurer.
C) external auditor.
D) internal auditor.
11) Which of the following statements about internal control is FALSE?
A) Internal auditors insure that employees follow company policies.
B) The treasurer is the officer ultimately responsible for writing of checks.
C) External auditors are employees of the company.
D) The control environment is known as the "tone at the top."
12) Internal and external auditors are part of which of the following components of internal control?
A) Monitoring controls
B) Information systems
C) Control procedures
D) Control environment
13) A pharmaceutical company testing drugs to determine possible side effects is a part of:
A) monitoring controls.
B) information systems.
C) control procedures.
D) risk assessment.
14) Before any internal control procedure is initiated, a question which should be addressed by the company is:
A) Will this stop all theft?
B) Is this the best security money can buy?
C) How much benefit will be derived from the cost of the procedure?
D) Will this prevent all accounting errors?
15) Which of the following is NOT a key element of good internal control?
A) Having competent, reliable and ethical personnel
B) Having periodic audits
C) Having a good working environment for employees
D) Having separation of duties
16) In a large company, the person who is responsible for writing checks is the:
A) CEO.
B) CFO.
C) controller.
D) treasurer.
17) Which of the following describes the
control environment?
A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.
B) The control environment is the "tone at the top" of the business.
C) The control environment is designed to ensure that the business's goals are achieved.
D) A company must identify its risks.