An Example of Poor Internal Control Is

question 27

Multiple Choice

An example of poor internal control is

• A) the accountant should not have physical custody of the asset nor access to it.
• B) the custodian of an asset should not maintain or have access to the accounting records.
• C) one person should be responsible for handling related transactions.
• D) a salesperson makes the sale, and a different person ships the goods.

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Definitions:

Empowerment

The process of giving power or authority to individuals or groups, enabling them to make decisions, take actions, and control their own destinies.

Participative Leadership

A leadership approach that encourages the participation of team members in decisions, promoting teamwork and shared accountability.

High-performance Culture

An organizational culture characterized by an intense focus on performance metrics, excellence, teamwork, and achieving superior outcomes.

Service

Aid and assistance provided to others; concern for the well-being and the best interest of another person or group.