Asked by Bailey Glover on Jun 12, 2024
Verified
Which of the following reflects a weak internal control system?
A) All employees are well supervised.
B) A single employee is responsible for comparing a receiving report to an invoice.
C) All employees must take their vacations.
D) A single employee is responsible for collecting and recording cash.
Internal Control System
A system within an organization that directs, monitors, and measures its resources and processes to achieve objectives, such as financial reliability, operational efficiency, and compliance with laws and regulations.
- Comprehend the underlying principles and objectives pertaining to internal control systems.
- Comprehend the components and significance of an effective internal control environment.
Verified Answer
BP
Bejal PatelJun 16, 2024
Final Answer :
D
Explanation :
Allowing a single employee to be responsible for collecting and recording cash is a weak internal control system as it opens up the possibility of fraud or theft. A stronger system would involve having multiple employees involved in the cash handling process and ensuring that there are checks and balances in place to prevent any unauthorized access or manipulation. Options A, B, and C all reflect stronger internal control measures.
Learning Objectives
- Comprehend the underlying principles and objectives pertaining to internal control systems.
- Comprehend the components and significance of an effective internal control environment.