Which of the Following Is NOT a Principle of Internal

question 113

Multiple Choice

Which of the following is NOT a principle of internal control?

• A) Responsibilities should be clearly established
• B) Adequate records should be maintained
• C) Responsibility for related transactions should be divided
• D) Assets should be insured and employees bonded
• E) Audits should always be conducted by employees internal to the organization

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Definitions:

Collection Float

The time difference between when a check is deposited into a bank account and when the funds are made available.

Availability Delay

The lag time between when a deposit is made into an account and when the funds become available for use.

Collection Float

The time difference between when a check is deposited into a bank account and when the amount is credited to the account, affecting the cash flow.

Collection Float

The time period between when a check is deposited into a bank account and when the amount is available for use.