Which one of the following is not an objective of a system of internal controls?Group of answer choicesEnhance the accuracy and reliability of accounting recordsOverstate liabilities in order to be conservativeReduce the risks of errorsSafeguard company assets

Internal controls are concerned withGroup of answer choicesonly manual systems of accounting.the extent of government regulations.safeguarding assets.preparing income tax returns.

Internal control is defined, in part, as a plan that... Question 3Answera.enhances the accuracy and reliability of accounting recordsb.all of the other options are correctc.eliminates mistakes and errorsd.prevents robbery and theft

In addition to the audit of financial statements, it is also the responsibility of the auditor to establish and maintain internal controls that are effective in preventing and detecting material misstatements. Group of answer choices True False

According to PSA 400, which of the following is correct regarding internal control system?Select one:a.In the audit of financial statements, the auditor is only concerned with those policies and procedures within the accounting and internal control systems that are relevant to the financial statements.b.The internal control system is confined to those matters which relate directly to the functions of the accounting system.c.A strong environment, by itself, ensure the effectiveness of the internal control system.d.Internal control system refers to all the policies and procedures adopted by the auditor to assist in achieving management's objective.

What is the primary objective of internal controls over an entity's expenditures/disbursements cycle?Option     To ensure all cash disbursements are recorded accurately     To verify that transactions involving property, plant, and equipment are properly classified     To limit access to purchasing, receiving, and accounts payable records     To reconcile detailed cash and account balance records with control accounts and bank statements