Internal Controls and Their Importance in Businesses

Take Test: Chapter 8 Quiz Test Information Description Instructions MultipleAttemptsNot allowed. This test can only be taken once. ForceCompletionThis test can be saved and resumed later. Your answers are saved automatically. Question Completion Status: QUESTION 1 1.Internal control is said to be the backbone of all businesses. Which of the following is the best description of internal controls? The only role of internal controls is to protect customer data. Internal controls are designed to keep employees from committing fraud against the company. Internal controls ensure that the financial statements published are correct. Internal controls and company policies are important to protect and safeguard assets and to protect all company data and are designed to protect the company from fraud. 2 points QUESTION 2 1.Which of the following is not considered to be part of the internal control structure of a company? Publish accurate financial statements on a regular basis. Monitor operations of the organization to ensure maximum efficiency. Ensure that assets are kept secure. Ensure assets are properly used. 2 points QUESTION 3 1.A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? The person in accounts payable should generate the purchase order. The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. No changes would be made since the person paying the bills is different from the person ordering the inventory. The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people. 2 points QUESTION 4 1.Which one of the following documents is not needed to process a payment to a vendor? check request purchase order packing slip vendor invoice