Which One of the Following Functions Performed in an Organization

question 44

Multiple Choice

Which one of the following functions performed in an organization is a violation of internal control?

• A)A mail clerk opening the mail compares the check received with the source document accompanying the payment, noting the amount paid, then forwards the checks daily (along with a listing of the cash receipts)to the Cashier for deposit
• B)A mail clerk opening the mail compares the check received with the source document accompanying the payment, noting the amount paid, then forwards the source documents that accompany the payments (along with a listing of the cash receipts)to Accounts Receivable, on a daily basis, for posting to the subsidiary ledger
• C)At the end of the week the Cashier prepares a deposit slip for all of the cash receipts received during the week
• D)The General Ledger clerk compares the summary journal entry, received from the Cashier for cash receipts applicable to outstanding accounts, with the batch total for posting to the Subsidiary Ledger by the Accounts Receivable clerk

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Definitions:

Closely Held

A company that has a limited number of shareholders and whose stocks are not publicly traded.

Publicly Held

Describes a company whose shares are traded openly on stock exchanges, allowing members of the general public to buy and sell shares.

Corporate Bylaws

The rules and procedures established by a corporation to govern its operations and management.

Internal Management

The processes, policies, and procedures that govern the day-to-day operations and decision-making within an organization or entity.