If the Same Employee Is Responsible for Authorizing a Business

question 60

Multiple Choice

If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?

• A)A good audit trail
• B)Separation of duties
• C)Internal review of controls
• D)Competent employees

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Definitions:

Alertness

Alertness refers to the state of being attentive and ready to respond quickly to changes or potential threats in one's environment.

Opportunities

Situations or conditions favorable for achieving a specific goal or success.

Entrepreneurship

The act of creating, developing, and managing a new business venture in order to profit while bearing any of its risks.

Idea Generation

The act of generating, expanding, and conveying innovative thoughts.