Which of the following statements concerning internal control is true?

Question

Quizplus · Accepted Answer

Double entry accounting is a system of checks and balances within accounting that helps to prevent errors and fraud. While it is an accounting practice, it is also considered an internal control measure.

B) While good internal control can certainly help to prevent and detect fraud, it cannot completely eliminate the possibility of fraud occurring.

C) Physical counts of stock on hand are a common internal control procedure, as they help to ensure that the physical inventory matches the inventory records.

D) It is never OK to pay accounts out of unbanked receipts, as this could lead to inaccuracies and potential fraud. Internal control measures would require that all transactions are properly recorded and documented.

Which of the Following Statements Concerning Internal Control Is True