Question

Separation of duties, required employee absences, using renumbered documents are all examples of?

1) Internal control activities
2) Audit procedures
3) Financial statements
4) Management decisions

Answer 1

The correct answer to the question is that separation of duties, required employee absences, and using renumbered documents are all examples of internal control activities.

Step-by-step explanation:

Separation of duties, required employee absences, and using renumbered documents are all examples of internal control activities. These measures are part of a company's effort to ensure accuracy and integrity in its financial transactions and to prevent fraud. Separation of duties ensures that no single individual has control over all aspects of any significant transaction, which reduces the risk of error or fraud. Required employee absences (also known as mandatory vacations) help in detecting frauds that require the constant presence of the perpetrator.

Lastly, the use of renumbered documents, such as checks or purchase orders, helps to prevent unauthorized or duplicate transactions by providing a clear audit trail. These are strategies implemented by management to safeguard the company's assets and are essential elements of a robust internal control system. Therefore, the correct answer to the question is option 1) Internal control activities.