1. The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures.
2. All organizations face risks, and the assessment of these risks is necessary so that the objectives of internal control can be achieved.
3. Adding a review of operations by an internal audit staff strengthens internal control.
4. Information and communication are essential elements of an organization's internal control.
5. A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.
6. A voucher is the notification accompanying the check issued to a creditor that indicates the specific invoice being paid.
7. For efficiency of operations and better control over cash, a company should maintain only one bank account.
8. The depositor reconciles the bank's statement to the depositor's records.
9. A business that requires that all cash payments be made by check CANNOT use a petty cash system.
10. Money market accounts, commercial paper, and U.S. Treasury Bills are examples of bcash equivalents.