QS $6-1($Algo$)$ Internal control objectives LO C$1$

Indicate which statements are true and which are false.

Separation of recordkeeping for assets from the custody over assets does not prevent collusion between two or more

employees to commit fraud.

Separating the responsibility for a transaction between two or more individuals or departments never improves a

system of internal control.

Establishing responsibilities helps determine who is at fault for errors or fraud.

Hiring auditors to review internal controls increases risk of theft.