An Accounts Payable Clerk Also Has Cheque Signing Authority

question 80

Multiple Choice

An accounts payable clerk also has cheque signing authority.Which control procedure is violated?

• A)assignment of responsibility
• B)review and reconciliation
• C)documentation
• D)segregation of duties

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Definitions:

Long-Term Financing

Funding obtained for a time period exceeding one year, used for acquiring or investing in long-duration assets.

Conservative

In finance, conservative refers to an investment strategy or financial decision-making approach that prioritizes preservation of capital and minimizes risk.

Net Working Capital

The disparity between an organization's immediate assets and liabilities, showcasing its financial stability in the short-term.

Accounts Payable

Short-term liabilities or the money a company owes to suppliers or vendors for goods and services that were purchased on credit.