FAR — Financial Accounting & Reporting — Quiz 28

Questions in this quiz (10)

1. Which control helps ensure accuracy of automated accounting calculations?

   • Segregation of duties
   • IT application controls
   • Authorization procedures
   • Physical safeguards

2. Which control is most effective in restricting access to accounting systems?

   • Independent verification
   • Password protection and role-based access
   • Bank reconciliation
   • Monitoring

3. Which internal control component ensures employees receive policy updates?

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

4. What is a primary objective of internal control systems?

   • Eliminate all risks
   • Improve operational efficiency and reliable reporting
   • Replace external audits
   • Eliminate accounting judgments

5. Which control activity involves reviewing work performed by employees?

   • Authorization procedures
   • Independent verification
   • Physical safeguards
   • Risk assessment

6. Which internal control component establishes ethical behavior expectations?

   • Monitoring
   • Control environment
   • Control activities
   • Risk assessment

7. Which control ensures transactions are approved before processing?

   • Segregation of duties
   • Authorization procedures
   • Monitoring
   • Physical safeguards

8. Which procedure compares accounting records to external statements?

   • Independent verification
   • Bank reconciliation
   • Authorization procedures
   • Segregation of duties

9. Which control protects inventory from unauthorized use?

   • Monitoring
   • Physical safeguards
   • Segregation of duties
   • Independent verification

10. Which internal control component identifies potential business risks?

    • Monitoring
    • Control environment
    • Risk assessment
    • Control activities