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Which of the following is not generally an internal control activity? a.Limiting access to computerized accounting...

Which of the following is not generally an internal control activity?

a.Limiting access to computerized accounting records

b.Reducing the cost of hiring seasonal employees

c.Physically counting inventory in a perpetual inventory system

d.Establishing clear lines of authority to carry out specific tasks

Business   Accounting   
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Homework Answers

Answer #1

Option B : Reducing the cost of hiring seasonal employees is correct.

Reason : Cost of hiring the sessonal employees is not wholy within the control of the entity .

Reasons for other options are incorrect :

Option A : Limiting access to computerized accounting records is within the control of the entity.

Option C : How Physically counting inventory has to be done is decided within the entity.

Option D : Who to perform , How to perform the tasks are determined within the entity management .

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