In a System of Proper Internal Controls, the Same Employee

question 13

Multiple Choice

In a system of proper internal controls, the same employee should not be allowed to:

• A)Sign checks and cancel the supporting voucher package
• B)Receive goods and prepare the related receiving report
• C)Prepare voucher packages and sign checks
• D)Initiate purchase requisitions and inspect goods received

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Definitions:

Life Annuity

An insurance product that provides the holder with a series of payments for the remainder of their life, in exchange for an initial lump sum payment.

Term Annuity

An annuity that provides regular payments over a fixed period of time, after which payments cease.

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal at the end of each month, increasing the subsequent month's interest amount.

Economic Value

A measurement of the benefit provided by a good or service to an individual or society, often quantified in terms of money.