True / False Questions
1. A properly designed internal control system is a key part of accounting information systems’ design, analysis, and performance.
2. The use of internal controls provides guaranteed protection against losses due to operating activities.
3. Internal control policies and procedures are the same for all companies.
4. Maintaining adequate business records is an important internal control principle.
5. Proper internal control means that the responsibility for a task is clearly established and assigned to one person.
6. Technology such as cash registers, check protectors, time clocks, and personal identification scanners can increase the strength of internal controls.
7. Internal control systems used to monitor and control operations are a low priority for managers within the company.
8. Bonding does not discourage employees from stealing from the company as employees know that bonding is an insurance policy against loss from theft.
9. Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.
10. Once a good system of internal control is in place, it rarely needs review.