Quiz Detail

Q1 . Which of the following is not a true statement ?

A Putting controls in place will always cost more money

B Controls help to ensure compliance with policies

C Controls will help the organization achieve its mission

D Controls will help protect the organization's assets

Q2 . Which of the following is true regarding internal controls?

A Are only needed to keep dishonest people from stealing

B Are not needed in a small office where everyone knows each other

C Are not needed if the staff is honest

D Are always necessary regardless of the staff involved

E Are only required in situations when the Business Manager is located away from the office

Q3 . Which is not an example of internal controls ?

A Approval of documents by the Business Manager (or delegate)

B Training in various systems: SRM, SAP…

C Protecting office and lab equipment in secured areas

D Creating and communicating to staff policies and operating procedures

E Requiring one person to handle all payroll to minimize exposure to confidential information

Q4 . Who has the primary responsibility for internal controls in a company ?

A The CEO / Managing director

B Business Managers

C The Internal Audit department

D Accounting Services

Q5 . You have accepted a position whose duties include the role of Business Manager for several departments. One of your first decisions is to delegate your signature authority and the review of the payroll voucher reports for fiscal transactions to a fiscal approver for one of the departments. Of the list of potential candidates, who should you not chose to be a fiscal approver?

A The account manager for the department

B Administrative support staff who have no payroll processing duties

C Administrative support staff who are payroll processors

D Administrative support staff who have no payroll processing duties but who are outside of the department

E You would not choose: a, c, or d from above

Q6 . The most important component of internal controls is

A Segregation of duties

B Following policies

C The integrity, ethical values, and competence of an organization’s employees

D Theft prevention

Q7 . Which of the following is not an example of internal controls?

A Maintain adequate records

B Combine recordkeeping and custody of assets

C Apply technological controls

D Make deposits daily or per policy

Q8 . The Business Manager of the School of DeArts wants to make sure the controls that were implemented are still effective. The Business Manager should:

A Ask all of the other school Business Managers if they have had any money stolen

B Change the locks on the doors

C Spot-check transactions, records, and reconciliations to ensure they meet expectations

D Ask for an Internal Audit of the school’s internal controls

E All of the above