Which of the Following Internal Control Weaknesses Would an Internal

question 364

Multiple Choice

Which of the following internal control weaknesses would an internal auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?

• A) Purchasing policies have not been updated.
• B) The organization is not taking advantage of quantity discounts available from its suppliers.
• C) Payments for goods received have not been authorized at the appropriate level.
• D) Payments to suppliers are made before goods are received.

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Definitions:

Net Capital Outflow

The net flow of funds used for investments in foreign assets by a country minus the flow of investment funds into the country from abroad within a specified timeframe.

Foreign Assets

Investments or ownerships in enterprises, securities, or properties located outside the investor's domestic country.

Real Exchange Rate

The rate at which two currencies can be exchanged, adjusted for their countries' respective inflation rates, to purchase an equivalent quantity of goods and services.

Foreign Assets

Investments including securities and properties owned by a country or individual in foreign countries.