1. Which of the following is a type of detective control?

Select one:

a. Reconciling the bank statement to the cash account

b. Forced vacation policy

c. Separation of duties

d. Both A and B

2. William Basinski estimates that the potential risk of payroll errors for the calendar year 2020 is 10% and the exposure to said risk is $35,000 in payroll reprocessing costs. He is considering implementing an internal control to combat this risk, but that internal control costs $12,000 per every four years. Which of the following statements is correct?

Select one:

a. The annual expected loss is $3,500 and William should not use the internal control

b. The annual expected loss is $3,500 and William should use the internal control

c. The annual expected loss is $3,000 and William should not use the internal control

d. The annual expected loss is $3,000 and William should use the internal control

3. Which of the following controls would be effective in combating the threat of employees falsifying records in order to conceal theft of assets entrusted to them?

Select one:

a. Separate recording and authorization over those assets

b. Separate authorization and custody over those assets

c. Separate custody and recording over those assets

d. All of the above would be equally effective in combating asset theft