Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 22

For the following questions, circle the best response.

Internal control systems involve a series of checks and balances that separate each of the functional duties involved in processing a transaction, and are normally designed to do all of the following except

a. Promote accuracy and reliability of the company’s records and financial statements.

b. Safeguard and protect a company’s assets against improper or unauthorized use.

c. Prevent groups of employees from committing collusive acts of fraud.

d. Encourage employees to adhere to the company’s prescribed policies and procedures.

e. Provide an environment that is conducive to efficient operation of the organization.