Which of the following statements about internal control is correct A The

Which of the following statements about internal

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16. Which of the following statements about internal control is correct? A. The establishment and maintenance of internal control is an important responsibility of the internal auditor. B. Properly maintained internal control reasonably ensures that collusion among employees cannot occur. C. The cost-benefit relationship is a primary criterion that should be considered in designing internalcontrol. D. Exceptionally strong internal control is enough for the auditor to eliminate substantive tests on a significant account balance. 17. For internal control purposes, which of the following individuals should preferably be responsible for the distribution of payroll cheques?
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18. Which of the following is one of the overriding principles of internal control? 19. For effective internal control purposes, which of the following individuals should be responsible for mailing signed cheques? 20. Peter Budd, the purchasing officer of Lake Hardware Wholesalers Pty Ltd (Lake), has a relative who owns a retail hardware store. Peter Budd arranged for hardware to be delivered by manufacturers to the retail store on a COD basis, thereby enabling his relative to buy at Lake's wholesale prices. Budd was probably able to accomplish this because of Lake's poor internal control for: A. purchase requisitions. B. cash receipts. C. perpetual inventory records. D. purchase orders. 21. A company policy should clearly indicate that defective merchandise returned by customers is tobe delivered to the:
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22. An effective internal control for the payroll function would generally include which of the following? those specific jobs.
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  • Three '11
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