The Internal Control Process That Requires the Approval of the Purchase

question 68

Multiple Choice

The internal control process that requires the approval of the purchase return transaction take place before the preparation of the debit memo, will help to minimize the risk of:

• A)Fictitious returns
• B)Omitted returns
• C)Invalid returns
• D)Wrong vendor

---

Definitions:

Insufficient Funds

A situation where an account does not have enough money to cover checks or other withdrawals made against it.

Civil Suit

A legal action between private parties (as opposed to criminal proceedings), often involving demands for compensation for harm or enforcement of rights.

Wrongfully Dishonors

The unjustified refusal to accept or pay a financial instrument, such as a check, when it is presented for payment.

Resulting Damages

Financial losses or harm that occur as a direct consequence of an action or event.