Internal Controls Can Prevent, Detect or Correct a Problem

question 60

Multiple Choice

Internal controls can prevent, detect or correct a problem.Which of the following groups includes controls that will fulfill all three with respect to the risk of an employee embezzling money by forging a manager's signature on a check?

• A)Separation of duties, internal audit, employee bonding
• B)Physical security of cash, pre-numbered documents, restrictive endorsements
• C)Separation of duties, pre-numbered documents, restrictive endorsements
• D)Physical security of cash, internal audit, employee bonding

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Leaders

Individuals who influence, guide, or direct others towards achieving set goals or visions, often by inspiring, motivating, and making strategic decisions.

Elizabeth I

Queen of England from 1558 to 1603, known for her strong leadership, the Elizabethan era's prosperity, and her role in the defeat of the Spanish Armada.

Leadership Effectiveness

The degree to which a leader successfully inspires, guides, and influences others towards achieving collective goals and visions.