Internal Controls - #2 Flashcards
1
Q
Within a given transaction cycle is risk essentially constant (T/F)
A
True
2
Q
Proper Segregation of Duties separates what 3 functions?
A
- Authorization
- Custody
- Record Keeping
3
Q
What is the best audit tool to test segregation of duties?
A
Observation
4
Q
Control Activities (5)
A
SCARE
- Segregation of Duties
- Controls
- Authorization
- Reviews
- EDP/IT
5
Q
Who should mail checks?
A
Whoever sign them, typically Treasurer
6
Q
How would an auditor determine if checks are issued for legitimate reasons?
A
Trace canceled checks to the proper documentation
7
Q
Purpose of Segregation of duties is not to allow an individual to do both of what two things?
A
Perpetrate & Conceal and error or irregularty
