Chapter 7 RAT - Fraud, Internal Control, and Cash
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9 terms
Terms | Definitions |
|---|---|
 The most important element of fraud is... | opportunity |
| The responsibility for keeping records for an asset should be separate from the physical custody of that asset. | TRUE |
| A good system of internal control will safeguard its assets and enhance the accuracy and reliability of its accounting records | TRUE |
| A basic principle of cash management is to increase the speed of paying liabilities. | FALSE |
| What are the main factories that contribute to fraudulent activity? | Opportunity, Financial pressure, and Rationalization. |
| A consequence of separation of duties is that.... | theft is still possible when several employees are involved. |
| In larger companies, the independent internal verification procedure is often assigned to | internal auditors |
| Control over cash disbursements is generally more effective when | payments are made by check |
| On a bank reconciliation what would be deducted from the balance per bank? | Outstanding checks |
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