QUESTIONS What best describes Internal controls? A. A set of processes used to detect errors and irregularities, B. Procedures used to detect errors and irregularities in asset accounts C. A set of processes and procedures to safeguard assets and detect errors. D. A set of processes and procedures used to detect fraud and find errors in accounting data. QUESTIONS Why is a good system of Internal controls necessary over inventory? A. Inventory is an asset that a company must have available to sell B. Inventory is large and hard for a company to manage with proper controls. C. Inventory is one of the main targets of fraud and theft D. Inventory is tied to abilities and must be managed before too much debt is incurred. QUESTION 10 An effective method of internal control is periodically comparing reconciling actual assets with accounting records. How is this most easily accomplished A Physically count inventory and compare the value of the inventory with the market to ensure inventory is not devaluing B. Compare a physical count of inventory to purchase orders maintained in accounting files. C. Compare what is recorded in the accounting records with the purchase orders maintained in the accounting files D. Physically count inventory on hand and compare it with what is recorded in the accounting records