1. Which of the following are categories set forth in COSOs framework for designing an internal control system?

a) Compliance with applicable laws and regulations

b) Effectiveness and efficiency of operations

c) Reliability of financial reporting

d) Safeguarding the companys assets

2. Which of the following functions should be segregated to ensure good internal control over cash receipts?

a)Employees involved in or have access to accounting records

b) Employees involved in the reconciliation of cash book balances to bank balances

c) Employees who handle cash

d) Employees who sign checks made out to vendors

3. Which of the following are important elements of a cash disbursement control system?

a) All expenditures are authorized before a check is prepared.

b) Checks are signed only by authorized individuals.

c) The bank-generated deposit slip should be compared with the check listing.

d)The person opening the mail is not the person who maintains the accounting records.

e) Unauthorized payments are prevented.