1. Which one of the following is not an objective of a system of internal controls? 2. Internal...

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1. Which one of the following is not an objective of a system of internal controls? 2. Internal controls are concerned with _____. 3. Internal control is defined, in part, as a plan that safeguards _____. 4. Having one person post entries to accounts receivable subsidiary ledger and a different person _____. 5. Having one person responsible for the related activities of ordering merchandise, receiving _____. 6. The custodian of a company asset should _____. 7. When two or more people get together for the purpose of circumventing prescribed controls, it is called _____. 8. From an internal control standpoint, the asset most susceptible to improper diversion and use is _____. 9. The principle of establishing responsibility does not include _____. 10. The control principle related to not having the same person authorize and pay for goods is known as _____. 11. Two individuals at a retail store work the same cash register; this situation can be evaluated as _____. 12. An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of _____. 13. _____ is responsible for establishing a system of internal control. 14. The independent internal verification principle involves each of the following except the _____ of data prepared by other employees. 15. Jolene is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates _____. 16. The extent of internal control features adopted by a company must be evaluated in terms of cost-benefit: true or false? If false, why? 17. Physical controls to safeguard assets do not include _____. 18. In large companies, the independent internal verification procedure is often assigned to_____. 19. Maximum benefit from independent internal verification is obtained when _____. 20. If employees are bonded _____. 21. A system of internal control _____. 22. Allowing only designated personnel to handle cash receipts is an example of _____. 23. Control over cash disbursements is generally more effective when _____. 24. Reconciling the bank statement monthly is an example of _____. 25. Allowing only the treasurer to sign checks is an example of _____.

Robert · Accepted Answer

1 
1. Which one of the following is not an objective of a system of internal controls?  Overstates liabilities in 
order to be conservative 
2. Internal controls are concerned with the extent of government regulations.  
3. Internal control is defined, in part, as a plan that safeguards assets. 
 4. Having one person post entries to accounts receivable subsidiary ledger and a different person posts to 
the Accounts Receivable Control account in the general ledger 
5. Having one person responsible for the related activities of ordering merchandise, receiving _and paying 
for them____. 
 6. The custodian of a company asset should _ not have access to the accounting records for that asset 
____. 
 7. When two or more people get together for the purpose of circumventing prescribed controls, it is 
called collusion.  
8. From an internal control standpoint,

1. Which one of the following is not an objective of a system of internal controls? 2. Internal controls are concerned with _____. 3. Internal control is defined, in part, as a plan that safeguards...

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