The component of internal control that includes the formal procedures for reporting control deficiencies is:
A) Monitoring.
B) Information and communication.
C) Risk assessment.
D) Control activities.
Answer: Monitoring.
The components of internal control do not directly include:
A) Risk assessment.
B) Inflation adjustment.
C) Monitoring.
D) Control activities.
Answer: Inflation adjustment.
Separation of duties refers to:
A) Making each manager personally responsible for his/her department.
B) Keeping functions across different departments separate.
C) Preventing top management and lower-level employees from interacting.
D) Individuals who have physical responsibility for assets should not also have access to accounting records.
Answer: Individuals who have physical responsibility for assets should not also have access to accounting records.
