1. An accounts receivable clerk also has the responsibility of preparing deposits for payments received by mail. This is a violation of which internal control? (Points : 1)

Segregation of duties

Independent verification

Accountability

Documenting of procedures

Question 2.2. What is meant by bonding of employees? (Points : 1)

The company has determined that these are responsible employees.

The company does not let employees handle cash.

The company is insured against misappropriation of assets.

The company has ensured that employees cannot steal assets.

Question 3.3. Which is a limitation of internal controls? (Points : 1)

Automated controls are ineffective.

Discrepancies are reported to management.

Internal control costs exceed benefits.

Management can circumvent controls.