Chapter 5 Flashcards
A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n)
preventive control.
Duplicate checking of calculations and preparing bank reconciliations and monthly trial balances are examples of what type of control?
Detective control
Maintaining backup copies of files, correcting data entry errors, and resubmitting transactions for subsequent processing are examples of what type of control?
Corrective control
Identify the preventive control below.
A) Reconciling the bank statement to the cash control account.
B) Approving customer credit prior to approving a sales order.
C) Maintaining frequent backup records to prevent loss of data.
D) Counting inventory on hand and comparing counts to the perpetual inventory records.
Approving customer credit prior to approving a sales order.
Identify the detective control below.
A) Reconciling the bank statement to the cash control account.
B) Approving customer credit prior to approving a sales order.
C) Maintaining frequent backup records to prevent loss of data.
D) Ensuring that the employee who records cash received from customers does not also have access to the cash itself.
Reconciling the bank statement to the cash control account.
Identify the corrective control below.
A) Reconciling the bank statement to the cash control account.
B) Approving customer credit prior to approving a sales order.
C) Maintaining frequent backup records to prevent loss of data.
D) Counting inventory on hand and comparing counts to the perpetual inventory records.
Maintaining frequent backup records to prevent loss of data.
Which internal control framework is widely accepted as the authority on internal controls?
COSO Integrated Control.
The purpose of the COSO Enterprise Risk Management framework is
to improve the organization’s risk management process.
