Test 3

Question 1

Internal control

Answer 1

a company’s plan to (a) encourage adherence to company policies and procedures, (b) promote operational efficiency, (c) minimize errors and theft, and (d) enhance the reliability and accuracy of accounting data

Question 2

Committee of Sponsoring Organizations (COSO) of the Treadway Commission

Answer 2

the organization is dedicated to improving the quality of financial reporting through, among other things, effective internal controls

Question 3

Separation of duties

Answer 3

Employees involved in recordkeeping should not also have physical access to the assets