FAR — Financial Accounting & Reporting — Quiz 25

Questions in this quiz (10)

1. Which internal control limits access to company assets to authorized personnel only?

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

2. Which internal control activity involves analyzing financial reports to identify unusual trends?

   • Monitoring activities
   • Authorization procedures
   • Segregation of duties
   • Control environment

3. Which situation indicates a weakness in internal control?

   • Independent verification of records
   • Segregation of duties
   • One employee handles cash and records transactions
   • Periodic audits

4. What is the purpose of internal controls over financial reporting?

   • Increase profits
   • Ensure reliable financial reporting
   • Eliminate audits
   • Reduce operational costs

5. Which control compares inventory records to physical counts?

   • Authorization
   • Independent verification
   • Risk assessment
   • Monitoring

6. Which best describes the control environment?

   • Authorization procedures
   • Management's ethical tone and oversight
   • Monitoring reports
   • Risk identification

7. Which control prevents unauthorized access to accounting systems?

   • Bank reconciliation
   • Password protection and restricted access
   • Segregation of duties
   • Monitoring

8. Which control requires supporting documentation for transactions?

   • Monitoring
   • Authorization procedures
   • Adequate documentation
   • Risk assessment

9. Which is an example of a detective control?

   • Authorization procedures
   • Bank reconciliation
   • Segregation of duties
   • Password protection

10. Which control helps ensure transactions are recorded accurately?

    • Monitoring
    • Adequate documentation
    • Risk assessment
    • Segregation of duties