Choose the Proper Category of Internal Control Activities That Best

question 163

Multiple Choice

Choose the proper category of internal control activities that best matches the following actions. Each action should be matched with a different numbered item within the internal controls list.
-Clearly defined authority and responsibility

• A)One employee or department should verify the work of another.
• B)Specific approval is given by management for the performance of activities.
• C)Accounting and cash collections should be properly separated.
• D)Blank checks should be stored in a locked location.
• E)Initial entry into the accounting system should be from a consistent source with complete information.

Recognize the practical importance of putting agreements in writing for business operations.

Learn about the treatment of individuals with limited capacity in contract law.

Understand the concept of electronic signatures and their legal effectiveness.

Identify situations where a contract must be in writing to be enforceable.

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Definitions:

Panic Disorder

A psychiatric condition characterized by sudden, recurrent episodes of intense fear or discomfort accompanied by other physical and psychological symptoms.

Compulsive Behaviors

Actions undertaken repeatedly in a ritualistic fashion, often in response to an anxiety-producing situation or thought, without rational motivation.

Cleaning

The process of removing dirt, impurities, and unwanted substances from objects or environments to maintain health and hygiene.

Checking Compulsions

This refers to repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, as a part of the symptomatology of Obsessive-Compulsive Disorder (OCD).