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:

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Special Identity

A unique or distinct character or personality that sets an individual, group, or entity apart from others.

Path of Development

The course or trajectory that an individual, organization, or project follows in order to achieve growth, progress, or advancement.

Demographic Challenge

Issues or problems faced by organizations or societies due to changes in population structure, such as aging populations or changing birth rates.