Which employees have an impact on the operation and effectiveness of internal controls?

A) Upper management.

B) Mid-level managers.

C) Lower-level employees.

D) All employees.

Answer: All employees.

Which employees are the ones who must take final responsibility for the establishment and success of internal controls?

A) Top executives.

B) Mid-level managers.

C) Lower-level employees.

D) All employees.

Answer: Top executives.

Having an independent party assess each year the adequacy of the company's internal control procedures is an example of which detective control?

A) Separation of duties.

B) Reconciliations.

C) Performance reviews.

D) Audits.

Answer: Audits.

Checking actual outcome of individuals or processes against their expected outcome is an example of which detective control?

A) Separation of duties.

B) Reconciliations.

C) Performance reviews.

D) Employee management.

Answer: Performance reviews.

Having management periodically determine whether the amount of physical assets of the company match the accounting records is an example of which detective control?

A) Separation of duties.

B) Reconciliations.

C) Performance reviews.

D) Employee management.

Answer: Reconciliations.

Allowing only certain individuals to have passwords to conduct online purchases is an example of which preventive control?

A) Separation of duties.

B) Physical controls.

C) E-commerce controls.

D) Employee management.

Answer: E-commerce controls.

Providing employees with appropriate guidance to ensure they have the knowledge necessary to carry out their job duties is an example of which preventive control?

A) Separation of duties.

B) Physical controls.

C) Proper authorization.

D) Employee management.

Answer: Employee management.