An Example of Poor Internal Control Is

question 119

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:

Cramér's V

A measure of association between two nominal variables, giving a value between 0 and 1 to indicate the strength of the association.

Critical Value

A threshold value that defines the boundary of the critical or rejection region for a statistical test, beyond which the null hypothesis is rejected.

Alpha

The threshold value used in hypothesis testing that determines the critical region for rejecting the null hypothesis.

Cramér's V

A measure of association between two nominal or categorical variables, providing an index value between 0 and 1.