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Question 7

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HealthIQs risk committee requested the management to design appropriate internal controls. They explained that there are five components of internal control. The company implemented the following internal controls.

(i) The management promotes sound human resources policies.

(ii) Any employee found guilty of theft is dismissed immediately.

(iii) Physical entry to the data centre is controlled through closed circuit televisions at the entrances.

(iv) Regular inventory counts are conducted and any differences between the items on the inventory list and the actual physical items are followed up on and resolved.

(v) The company has a receiving supervisor, a despatch supervisor and a stores controller who is responsible for the custody of inventory.

(vi) The company appointed a risk committee.

With reference to the internal control information above: Which ONE of the following alternatives of the internal controls listed (i) to (vi) relates to the internal control component of control activities?

Select one:

a.

i, ii, iii, iv and v.

b.

i, ii, iii, iv and vi

c.

iii, iv and vi

d.

i, ii and vi

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Question 8

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Which ONE of the following is not regarded as a control activity?

Select one:

a.

Document design

b.

Isolation of responsibilities

c.

Reconciliation of physical assets with recorded assets.

d.

Segregation of duties