Which of the Following Describes a Control Weakness

question 338

Multiple Choice

Which of the following describes a control weakness?

• A) Purchasing procedures are well designed and are followed unless otherwise directed by the purchasing supervisor.
• B) Pre-numbered blank purchase orders are secured within the purchasing department.
• C) Normal operational purchases fall in the range from $500 to $1, 000 with two signatures required for purchases over $1, 000.
• D) The purchasing agent invests in a publicly traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.

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Definitions:

Client-visits

Client-visits refer to the occasions on which a service provider or salesperson goes to see clients in their place of business or home.

Activity Variance

The discrepancy between what was planned to be spent on an activity and what was actually spent.

Budgeting

The act of designing a budget to allocate your finances, enabling you to predict beforehand if you'll possess sufficient funds to cover necessary or desired activities.

Total Expenses

The sum of all costs and expenses, both operational and non-operational, that a business incurs within a particular period.