80. An internal control system consists of the policies and procedures managers use to: A. Protect assets. B. Ensure reliable accounting. C. Promote efficient operations. D. Urge adherence to company policies. E. All of these. 81. Managers place a high priority on internal control systems because the systems assist managers in the: A. Prevention of avoidable losses. B. Planning of operations. C. Monitoring of company performance. D. Monitoring of employee performance. E. All of these. 82. The principles of internal control include: A. Establish responsibilities. B. Maintain minimal records. C. Use only computerized systems. D. Bond all employees. E. Require automated sales systems. 83. Principles of internal control include: A. Apply technological controls. B. Divide responsibilities for related transactions. C. Perform regular and independent reviews. D. Separate recordkeeping from custody of assets. E. All of these. 84. A properly designed internal control system: A. Lowers the company’s risk of loss. B. Insures profitable operations. C. Eliminates the need for an audit. D. Requires the use of non-computerized systems. E. Is not necessary if the company uses a computerized system. 85. A company’s internal control system: A. Eliminates the company’s risk of loss. B. Monitors company and employee performance. C. Eliminates human error. D. Eliminates the need for audits. E. All of these. 86. When two clerks share the same cash register it is a violation of which internal control principle? A. Establish responsibilities. B. Maintain adequate records. C. Insure assets. D. Bond key employees. E. Apply technological controls. 87. Prenumbered printed checks are an example of which internal control principle? A. Technological controls. B. Maintain adequate records. C. Perform regular and independent reviews. D. Establish responsibilities. E. Divide responsibility for related transactions. 88. The impact of technology on internal controls includes: A. Reduced processing errors. B. Elimination of the need for regular audits. C. Elimination of the need to bond employees. D. Elimination of separation of duties. E. Elimination of fraud. 89. Internal control policies and procedures have limitations including: A. Human error. B. Human fraud. C. Cost-benefit principle. D. Collusion. E. All of these.
