Indicate Whether Each of the Following Statements Regarding Internal Controls

question 37

Short Answer

Indicate whether each of the following statements regarding internal controls is true or false.
_____ a)Cash receipts should be deposited in a bank when they reach a predetermined level of materiality.
_____ b)To improve operating efficiency,a company should make most of its disbursements in currency instead of checks.
_____ c)Supporting documents are required when checks are presented to the check signer.
_____ d)Supporting documents should not be marked "paid" until the check clears the bank.
_____ e)All spoiled and voided checks should be shredded.

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Definitions:

MMPI-II Assessment

The Minnesota Multiphasic Personality Inventory-2, a comprehensive psychological test that assesses personality traits and psychopathology.

DSM-5 Diagnosis

The process of identifying a mental disorder using the criteria outlined in the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition.

Confound

A variable that influences both the dependent and independent variables in a study, making the results ambiguous because its effects cannot be separated from those of the variables of interest.

Causal Role

The function or influence that one factor has in directly bringing about change or results in another factor.