True / False

1) Internal control is a process that provides reasonable assurance concerning reliability of financial information.

2) The Foreign Corrupt Practices Act prohibits American companies to make payments to foreign officials to obtain business.

3) Incompatible duties exist when an employee is in a position to perpetrate and conceal errors or fraud.

4) Well-designed internal control can be circumvented by collusion.

5) CPA firms may use written narratives to describe internal control in their audit working papers.

6) In Managements report on the effectiveness of their internal control, management acknowledges its responsibility for establishing and maintaining adequate internal control over financial reporting.

7) A potential loss of assets is a consequence of implementing excessive internal control.

8) Increased bureaucracy is a consequence of implementing excessive internal control.

9) Excellent Internal control is able to provide absolute assurance to an entitys senior management and board of directors.

10) Incompatible duties are when 1 individual is in a position to both perpetrate and conceal a fraud.