ACG 2021- Final Exam Review
Questions Fully Solved 2025-2026
Updated
Under which of the following do computer programs that limit unauthorized access to certain
files fall? - Answer physical controls
Which of the following is an effective internal control over cash disbursements? - Answer -
The use of pre-numbered checks
-The storage of blank checks in a secure place
-The separation of authorization of checks and the actual writing of the checks
When preparing a bank reconciliation, how are deposits in transit handled? - Answer added
to the bank balance
Handy Inc. permits only designated personnel such as cashiers to handle cash receipts. What
principle is being applied? - Answer establishment of responsibility
During a given year, several parties examine the financial records of ABC Company. These
parties include internal auditors, independent auditors, and Internal Revenue Service agents.
Which of these parties are considered employees of ABC Company? - Answer internal
auditors
Which of the following will not require an adjusting entry as a result of a bank reconciliation? -
Answer deposits in transit
Which of the following is not a reason why an organization establishes a system for internal
control? - Answer to eliminate the need for an independent auditor
Which one of the following is not a physical control? - Answer independent bank
reconciliation
Which of the following is not a principle of internal control? - Answer collusion between
employees
For which item below might a bank issue a credit memorandum to a depositor's account? -
Answer interest earned
, Which of the following was not a result of the Sarbanes-Oxley Act? - Answer Companies
must file financial statements with the Internal Revenue Service.
Which of the following is not an element of the fraud triangle? - Answer collusion
Which one of the following is a primary component of an internal control system? - Answer
monitoring
Which one of the statements below is true? - Answer The deposits in transit are added to
the balance per the bank statement, and outstanding checks are deducted from the balance per
the bank statement during the bank reconciliation process.
Which of the following is an element of the fraud triangle? - Answer financial pressure
Which one of the following control activities is relevant when a company uses a computerized
(rather than manual) accounting system? - Answer -Establishment of responsibility
-Segregation of duties
-Independent internal verification
Which one of the following is not a primary component of an internal control system? - Answer
rationalization
Which of the explicitly requires that all publicly traded companies must maintain adequate
internal controls? - Answer the Sarbanes-Oxley Act
Which of the following is not an effective internal control over cash disbursements? - Answer
Requiring personnel who authorize cash disbursements to work continuously without vacations
Which of the following statements is false with regards to record-keeping for bank
reconciliations? - Answer Deposits in transit do require a journal-entry once the bank
reconciliation is completed.
For which of the following might a bank issue a debit memorandum to a depositor's account? -
Answer -NSF checks
-monthly service charge
An office supply store has a cashier who is also the accounts receivable clerk for the company.
Which internal control principles is violated - Answer segregation of duties
Questions Fully Solved 2025-2026
Updated
Under which of the following do computer programs that limit unauthorized access to certain
files fall? - Answer physical controls
Which of the following is an effective internal control over cash disbursements? - Answer -
The use of pre-numbered checks
-The storage of blank checks in a secure place
-The separation of authorization of checks and the actual writing of the checks
When preparing a bank reconciliation, how are deposits in transit handled? - Answer added
to the bank balance
Handy Inc. permits only designated personnel such as cashiers to handle cash receipts. What
principle is being applied? - Answer establishment of responsibility
During a given year, several parties examine the financial records of ABC Company. These
parties include internal auditors, independent auditors, and Internal Revenue Service agents.
Which of these parties are considered employees of ABC Company? - Answer internal
auditors
Which of the following will not require an adjusting entry as a result of a bank reconciliation? -
Answer deposits in transit
Which of the following is not a reason why an organization establishes a system for internal
control? - Answer to eliminate the need for an independent auditor
Which one of the following is not a physical control? - Answer independent bank
reconciliation
Which of the following is not a principle of internal control? - Answer collusion between
employees
For which item below might a bank issue a credit memorandum to a depositor's account? -
Answer interest earned
, Which of the following was not a result of the Sarbanes-Oxley Act? - Answer Companies
must file financial statements with the Internal Revenue Service.
Which of the following is not an element of the fraud triangle? - Answer collusion
Which one of the following is a primary component of an internal control system? - Answer
monitoring
Which one of the statements below is true? - Answer The deposits in transit are added to
the balance per the bank statement, and outstanding checks are deducted from the balance per
the bank statement during the bank reconciliation process.
Which of the following is an element of the fraud triangle? - Answer financial pressure
Which one of the following control activities is relevant when a company uses a computerized
(rather than manual) accounting system? - Answer -Establishment of responsibility
-Segregation of duties
-Independent internal verification
Which one of the following is not a primary component of an internal control system? - Answer
rationalization
Which of the explicitly requires that all publicly traded companies must maintain adequate
internal controls? - Answer the Sarbanes-Oxley Act
Which of the following is not an effective internal control over cash disbursements? - Answer
Requiring personnel who authorize cash disbursements to work continuously without vacations
Which of the following statements is false with regards to record-keeping for bank
reconciliations? - Answer Deposits in transit do require a journal-entry once the bank
reconciliation is completed.
For which of the following might a bank issue a debit memorandum to a depositor's account? -
Answer -NSF checks
-monthly service charge
An office supply store has a cashier who is also the accounts receivable clerk for the company.
Which internal control principles is violated - Answer segregation of duties
