TRUE-FALSE STATEMENTS
1.The most important element of the fraud triangle is rationalization.
2.Employees sometimes commit fraud because of personal financial problems caused by too much debt.
3.The safeguarding of assets is an objective of a company's system of internal control.
4.Internal control systems must be monitored periodically for their adequacy.
5.Internal control is most effective when several people are responsible for a given task.
6.The responsibility for keeping the records for an asset should be separate from the physical custody of that asset.
7.Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.
8.The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit.
9.An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as check on the other.
10.A segregation of duties among employees eliminates the possibility of collusion.