Internal control and cash quiz- true or false?

True or False:








1. Internal control is mainly concerned with the amount of authority a supervisor exercises over a subordinate.











2. Proper segregation of duties accounting eliminates the need for internal control.











3. The effectiveness of internal control is partially limited by cost-benefit considerations.











4. Internal control is the responsibility of management.











5. Internal control is most effective when several people are responsible for a given task.











6. The responsibility for keeping the records for an asset should be separate from the physical custody of that asset.











7. Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.











8. The extent of internal control activities adopted by a company must be evaluated in terms of cost-benefit.











9. An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as a check on the other.











10. Only large companies need to be concerned with a system of internal control.











Internal control and cash quiz- true or false?
1. False


2. False. Segregation of duties is only one aspect of internal control.


3. True


4. True


5. False (I think, but not entirely sure). That seems to go against the segregation of duties idea.


6. True


7. False. Mandatory vacations have been known to reveal fraud being perpetrated by people who never take vacations.


8. True


9. False. Many hands in one till = impossible to know for sure who's responsible for a shortage


10. False. There's numerous cases in the news of small businesses being defrauded over time by their bookkeeper due to a lack of internal control.

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