Page 1 : internal Control and Internal Check "ea" a" 127, , g.6 EXERCISES:, (1) Fillin the blanks:, , (a) _______ are the controls that are related to the Accounting, System., , (b) The auditorhasto___—__ the internal controls system., , (c) Study of internal controls enables the auditor to determine the, extent to which can be applied., , (dy. ais a review of the operations and records within a, business, by specially designed staff., , (e) is the system of allocation of responsibility and, division of work whereby the work of an employee is checked, continuously with the work of others., , (f) In the internal check system the work is divided in such a way, that no employee has control over any transaction., , [Ans.: (a) Accounting Controls; (b) evaluate; (c) test check;, (d) Internal Audit; (e) Internal Check; (f) exclusive], (2) State whether following statements are TRUE or FALSE:, (a) Developing the Internal Control System is Auditor's, responsibility., (b) Cashier only should be given the job of making entries in the, books of account., (c) Auditor can give suggestions for improvement of internal, control system., [Ans.: (a) False; (b) False; (c) True], (3) Match the columns:, , , , , , , , , , , , , , (i) No Access to books of account, (ii) Compulsory, , (iii) CA in practice, , (iv) Controls of Accounting system, (v) Voluntary as per management, (vi) No qualifications, , (Ans.: (a — iii); (b — Vi); (¢ —Wv); (dv); (ei), , , , , , , (a) Statutory Auditor, (b) Internal Auditor, (c) Accounting Control, (d) Internal Audit, , (e) Cashier