Question

5. Which of the following controls would be most effective in combating the dual threat of cash theft covered by inappropriately authorized transactions? Select one:
a. Separate authorization and custody over cash
b. Separate custody and recording over cash
c. Separate recording and authorization over cash
d. All of the above would be equally effective in combating the dual threat

8. Which of the following statements about the 2004 and 2017 ERM COSO frameworks is not true? Select one:
a. ERM offers management a process for effectively setting objectives for the firm b. COVID-19 would be a good example of an event under Event Identification
c. Risk Governance and Culture is one of the 5 Components of the 2017 COSO ERM framework
d. Depending on the nature and type of events, management will always be able to group some events together and detect trends that may assist with risk assessment

Answer 1

Solution:

5. The Correct answer is option d.

One of the main step included in preventing cash theft is Segregation of duties , means a single employee should not be given control over an entire accounting transaction.To prevent Cash theft , duties that should be separated are cash receipts , cash counts , cash disbursement , recording of cash deposites , authorisation over cash transactions , custody of cash etc.

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