All of the following are examples of a control activity except A)using prenumbered documents. B)reconciling the bank statement. C)insistence that employees work overtime. D)prenumbering cheques.

Question

Quizplus · Accepted Answer

Control activities in accounting and auditing are designed to ensure that all transactions are authorized and recorded correctly to prevent fraud and errors. Examples include using prenumbered documents (A) and prenumbering cheques (D) to track transactions systematically, and reconciling the bank statement (B) to compare the company's records with the bank's records for accuracy. Insistence that employees work overtime (C) is not a control activity; it relates to management practices and labor management rather than the internal control system designed to ensure accurate and reliable financial reporting.

All of the Following Are Examples of a Control Activity