1. Signify TRUE or FALSE as applicable for each of the following items as they pertain to an ideal internal control system.

3.1 An ideal internal control system cannot be undermined by collusion among

individuals.

1. True b) False

3.2 Accounting department personnel should not perform any other operational functions.

a) True b) False

3.3 The employee who signs checks should not reconcile the bank account.

a) True b) False

3.4 The employee who prepares checks should not reconcile the bank account.

a) True b) False

3.5 The employee who prepares checks should not sign checks.

a) True b) False

3.6 The employee who physically handles inventory should not authorize payment for it.

a) True b) False

3.7 The employee who physically handles inventory should not place orders with

vendors.

1. True b) False

3.8 The employee who places orders with vendors should not authorize payment for

them.

1. True b) False