(Competency 3: Learning Objectives 1) By the 1990s, the cost of personal computers and accounting software packages decreased significantly. This made it possible for small businesses to convert form a manual to a computerized accounting system. A) True False (Competency 3: Learning Objectives 2) Failure to implement adequate, statement fraud and A) internal controls; embezzlement. B accounting systems, embezzlement. GAAP, progress. GAAP, lack of progress. can result in financial (Competency 3: Learning Objectives 2) An effective internal control structure includes a company's plan of an organization and all the procedures and action it takes to: A Protect the assets against theft and waste B) Ensure compliance with company policies and federal laws Evaluate the performance of all personnel to promote efficient operations D Ensure accurate and reliable operating data and accounting reports All the above (Competency 3: Learning Objectives 2) Segregation of duties is when employees share responsibility for an unrelated transaction so that one employee's work serves as a check on the work of another employee. A True B False (Competency 3: Learning Objectives 2 & 3) Companies should have and other negotiable instruments. A fidelity bonds performance bonds immunity bonds premium bonds bonds on employees handling cash (Competency 3: Learning Objectives 3) Three groups responsible for internal control maintenance are management, board of directors and information technology staff. A True B False (Competency 3: Learning Objectives 4) A computer control is requiring a password and policy for password changes. A) True B False (Competency 3: Learning Objectives 2) Which control procedure is considered the most control over cash? A Deposit cash receipts the next business day B Deposit cash receipts daily Deposit post-dated checks on the date of the check (D) Lock up supply items valued over $25 per unit (Competency 3: Learning Objectives 2-4) Management should arrange duties so that a employee who handles cash receipts does not record the receipts in the computer. This control is best described as A fraudulent misconduct. B) fraudulent duties. segregation of duties. responsible duties. (Competency 3: Learning Objectives 3) Security Exchange Commissions is established to protect management. A True B False (Competency 3: Learning Objectives 3) Factors that could be motivating factors in fraud are job satisfaction and being overlooked for a promotion. (A) True B) False