Chapter 7 Quiz Question 1
The most important element of the fraud triangle is rationalization. Question 2
Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency. Question 3
Under an effective system of internal control, errors occur only as a result of fraud or dishonesty. Question 4
Control over cash disbursements is improved if major expenditures are paid by check. Question 5
Cash equivalents are highly liquid investments that can be converted into a specific amount of cash. Question 6
Which of the following is not one of the main factors that contribute to fraudulent activity? Question 7
Under the concept of establishment of responsibility, how many people should have the ultimate responsibility? Question 8
A consequence of separation of duties is that Question 9
In large companies, the independent internal verification procedure is often assigned to Question 10