FAR — Financial Accounting & Reporting — Quiz 24

Questions in this quiz (10)

1. Which internal control activity helps restrict access to accounting records?

   • Monitoring activities
   • Physical controls
   • Risk assessment
   • Segregation of duties

2. Which internal control procedure involves reviewing work prepared by another employee?

   • Authorization procedures
   • Independent verification
   • Monitoring
   • Risk assessment

3. Which situation represents a weakness in internal control?

   • Separate employees authorize and record transactions
   • Independent bank reconciliations
   • One employee authorizes and records transactions
   • Required supporting documentation

4. Which internal control component ensures financial information flows properly?

   • Monitoring
   • Information and communication
   • Risk assessment
   • Control activities

5. Which best describes monitoring in internal control?

   • Recording transactions
   • Reviewing internal controls periodically
   • Safeguarding assets
   • Approving purchases

6. Which control helps prevent unauthorized access to assets?

   • Risk assessment
   • Segregation of duties
   • Physical safeguards
   • Monitoring

7. Which control is most effective in detecting payroll errors?

   • Segregation of duties
   • Independent verification of payroll
   • Authorization procedures
   • Physical controls

8. Which internal control component identifies potential risks?

   • Monitoring
   • Risk assessment
   • Control environment
   • Information and communication

9. Which control prevents unauthorized purchases?

   • Monitoring
   • Authorization procedures
   • Independent verification
   • Segregation of duties

10. Which activity is typically performed by an internal auditor?

    • Recording transactions
    • Reviewing internal controls
    • Preparing financial statements
    • Processing payroll