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:

Scientific Observation

The systematic process of gathering empirical data through the use of controlled and repeatable methods, crucial for scientific inquiry and hypothesis testing.

Quantitative Measurement

The process of obtaining and evaluating numerical data to describe attributes of a phenomenon.

Decision Complexity

Refers to the level of difficulty involved in making a decision, often due to multiple variables, uncertainty, and potential consequences.

Nutritional and Dietary Requirements

The specific nutrient intake and dietary guidelines necessary to maintain health, often based on an individual's age, gender, and health status.