Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true.
a. Audits are less time consuming and less expensive in organizations with strong internal control systems.
b. Document matching concepts can be applied to purchases of and payments for offi ce supplies.
c. In companies with strong internal control, only one person has the authority to sign checks.
d. In the COSO Internal Control framework, control activities can be preventive, detective, or corrective.
e. Information technology eliminates the need for internal control systems.
f. Internal controls prevent fraud.
g. Liquidity risk is more important than other types of risk.
h. Preventive controls are more expensive than detective or corrective controls.
i. Properly implemented lockbox systems eliminate the need for bank reconciliations.
j. Reported weaknesses in internal control will lead to reductions in stock prices.