Effective Internal Control in a Small Company That Has an Insufficient

question 96

Multiple Choice

Effective internal control in a small company that has an insufficient number of employees to permit proper division of responsibilities can BEST be enhanced by:

• A) employment of temporary personnel to aid in the separation of duties.
• B) engaging a public accountant to perform monthly 'write- up' work.
• C) direct participation by the owner of the business in the record- keeping activities of the business.
• D) delegation of full, clear- cut responsibility to each employee for the functions assigned to each.

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Definitions:

Managerial Functions

Tasks performed by managers, which typically include planning, organizing, leading, and controlling.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Personality Disorder

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Cluster A

A category in the DSM used to classify personality disorders characterized by odd or eccentric behaviors, including paranoid, schizoid, and schizotypal personality disorders.