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:

Materials Ordered

The process of requesting and purchasing raw materials or supplies required for production or operations.

Materials Requisitions

Documents that request the release of materials to be used in the production process or for other operational needs.

Recording Materials

The process of documenting raw materials, work-in-progress, and finished goods within a business.

Factory Supervisor's Salary

Represents the compensation paid to an individual who oversees the operations and workers in a factory setting.