Which Situation Indicates a Weak Internal Control Structure

question 49

Multiple Choice

Which situation indicates a weak internal control structure?

• A)the mail room clerk authorizes credit memos
• B)the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
• C)the warehouse clerk obtains a signature before releasing goods for shipment
• D)the accounts receivable clerk prepares customer statements every month

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Definitions:

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Investors who are financially sophisticated and have a reduced need for the protection provided by regulatory disclosure filings, typically due to their wealth or income levels.

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