Which of the Following Is NOT an Example of an Internal

question 53

Multiple Choice

Which of the following is NOT an example of an internal verification procedure?

• A) accounting for numerical sequence of prenumbered documents
• B) checking accuracy of document preparation
• C) reviewing reports for incorrect items
• D) checking for authorisation of transactions

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Definitions:

Financial Statement

A written report which quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Refers to the classification of accounts where permanent accounts are balance sheet items that carry over into the next fiscal period, and temporary accounts are income statement items that are closed to equity at the end of the fiscal period.

Normal Balance

Reflects the expected balance orientation (debit for assets and expenses, credit for liabilities, equity, and revenues) of an account in double-entry bookkeeping.

Financial Statement

A written record that conveys the business activities and financial performance of a company, typically including the balance sheet, income statement, and cash flow statement.