An Organization Has Implemented a Software System That Requires a Supervisor

question 297

Multiple Choice

An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

• A) Preventive controls.
• B) Detective controls.
• C) Soft controls.
• D) Directive controls.

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Definitions:

Unconscionable

Referring to an agreement or action that is excessively unfair or unjust, often to the degree that it is deemed unenforceable in a court of law.

Resell

The act of selling a product or service that one has bought to another buyer.

Pay

To give money in exchange for goods, services, or to settle a debt.

Perfect Tender Rule

A rule requiring the seller to deliver goods to the buyer that exactly meet the terms of the contract, without any deviation.