A Company's Comparisons and Compliance Monitoring

question 172

Multiple Choice

A company's comparisons and compliance monitoring:

• A) should include cash budgets, which are the budgets of future period's net income.
• B) can contain "rolling" budgets which are constantly updated .
• C) should include internal auditors who are completely independent of the business.
• D) should contain adequate hiring practices.

Analyze and apply internal control principles to cash disbursement and receipt processes.

Understand the prevalence of fraud and the role of internal control in fraud prevention.

Compare and contrast the definitions and treatments of cash and cash equivalents under IFRS and GAAP.

Prepare and adjust entries in bank reconciliation and understand the effects of reconciling items on the adjusted cash balance.

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Definitions:

Vicarious Liability

The liability of an employer for the negligent acts of an employee done within the scope of the employee’s authority or employment.

Liability Insurance

A type of insurance that provides coverage to policyholders for any legal obligations arising from injury to others or damage to their property.

Unsafe Order

Instructions, typically in a healthcare setting, that could potentially lead to harm or adverse effects for the patient.

Continuing Care Assistant

A healthcare professional who provides support to patients, especially the elderly or those with chronic illnesses, in long-term care facilities or in-home settings.