Examples of segregation of duties include reporting, reviewing and approving reconciliations, and approval and control of documents. * TRUE FALSE
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A:
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- Regarding materiality, both amount and nature of misstatements should be considered. One of the inherent limitations of internal control is the lack of segregation of duties. Group of answer choices False, False True, True True, False False, TrueWhich of the following is not one of the categories of control activities? a.Checks on recorded amounts b.Segregation of duties c.Clearly defined authority and responsibility d.Defalcation and financial reportingProvide one example of a threat to the Reporting objective and one example of a threat to the Compliance objective of the COSO Framework when unauthorised changes to the Chart of Account are not being prevented.
- The separation of operational responsibility from record keepingis meant to prevent different types of misstatements than the separation of the custodyof assets from accounting. Explain the difference in the purposes of these two types ofseparation of duties.Identify each of the following statements as either true or false. Separation of duties eliminates the possibility of collusion to steal an asset and hide the theft from the records.Explain the difference between an attribute and an exceptioncondition. State the exception condition for the audit procedure: The duplicate salesinvoice has been initialed indicating the performance of internal verification.
- Which of the following is not an element of internal control? A) Only promoting from within. B) Implement segregation of duties. C) Maintain adequate accounting records. D) Conduct internal audits.Explain why deficiencies in internal controls might not always result in significant misstatements when transactions are recordedWhen processing controls within the accounting information system may not leave visible evidence that could be inspected by audit teams, the teams shoulda. Make corroborative inquiries.b. Observe the separation of duties of personnel.c. Review transactions submitted for processing and compare them to related output.d. Review the run manual.
- True or False Segregation of duties is one of the categories of control activities.Which of the following statements is NOT CORRECT relative to source documents? a. The internally generated source documents are verified as authorized and approved. b. They may be internally generated or received from different outside parties. c. The source documents received from outside parties d. numbered in series.A company cannot choose whether a mandatory information should be provided in the administration report or in notes choose an alternative True False