Chapter 7 a. b. The principles of internal control consist of all of the following except: establishment of responsibility. segregation of duties. generally accepted accounting principles. documentation procedures. c. d. 2. a b. The following measure is recommended to obtain maximum benefit from independent internal verification: The verification should be made periodically or on a surprise basis. The verification should be done by an employee who is independent of the personnel responsible for the information Discrepancies and exceptions should be reported to a management level that can take appropriate corrective action. d. all of these answers are correct. c. 3. a b. The concept of reasonable assurance rests on the premise that: employees duties should be rotated. employees should be required to take vacations the cost of establishing control procedures should not exceed their expected benefit. physical, controls should be in place. c. d. 4. a. b. Cash consists of: coin, currency, and postage stamps. coins, currency, checks, money orders, money on hand or on deposit in a bank or similar depository. coins, currency, postage stamps, money on deposit in a bank. all of the above. c. d