10. Auditing and Controls

Internal Controls — Quiz

Test your understanding of internal controls with 5 practice questions.

Practice Questions

Question 1

Which of the following describes a situation where an employee, due to a lack of proper internal controls, is able to both initiate and approve a transaction, leading to potential fraud?

Question 2

A company's internal control system includes a policy requiring all purchases over $$ \$1,000 $$ to be approved by two different managers. This is an example of which type of control activity?

Question 3

Which of the following best explains why 'segregation of duties' is a critical component of internal controls over information systems?

Question 4

A company's management is evaluating its internal control system to identify potential weaknesses. This process is most closely associated with which component of effective internal control systems?

Question 5

What is the primary benefit of implementing strong internal controls over information systems?