Exercise A State whether each of the following statements about internal control is true or false:
- Those employees responsible for safeguarding an asset should maintain the accounting records for that asset.
- Complete, accurate, and up-to-date accounting records should be maintained.
- Whenever possible, responsibilities should be assigned and duties subdivided in such a way that only one employee is responsible for a given function.
- Employees should be assigned to one job and should remain in that job so that skill levels will be as high as possible.
- The use of check protectors, cash registers, and time clocks is recommended.
- An internal auditing function should not be implemented because it leads the employees to believe that management does not trust them.
- One of the best protections against theft is to hire honest, competent employees.
- A foolproof internal control structure can be devised if management puts forth the effort.