Which of the Following Situations Indicates a Potential Material Weakness

question 48

Multiple Choice

Which of the following situations indicates a potential material weakness in internal control over acquisitions and expenditures?

• A)Purchase orders are not prepared for services that are acquired directly under authorization of department heads.
• B)The person who approves purchases also signs the cheques.
• C)Unacceptable goods are not recorded on receiving reports.
• D)The person who signs the cheques also stamps "paid" on the vouchers.

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Definitions:

Bee Sting

A sharp wound caused by the stinger of a bee injecting venom into the skin.

Hemolytic Disease

A condition where an immune response leads to the destruction of red blood cells, often seen in newborns due to blood type incompatibility.

Newborn

Refers to an infant who is within its first month of life outside the womb, a critical period for development and adaptation.

Rh Factor

An antigen found on the surface of red blood cells that can lead to immune reactions during blood transfusion or pregnancy if the donor and recipient or mother and fetus have incompatible Rh types.