Segregation of Duties Has an Important Role in Providing for Good

question 44

Multiple Choice

Segregation of duties has an important role in providing for good quality internal controls. Which of the following segregation of duties improve controls over the inventory and distribution cycle?

• A) the purchasing department should not be responsible for updating the economic order quantity
• B) the accounting staff should not be responsible for the data entry of supplier invoice detail
• C) the inventory transaction processing systems should not be accessible to the receiving department
• D) the purchasing department should not be responsible for authorizing the acquisition of or receiving the goods

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Definitions:

Formal-operational Thought

The fourth and final stage of Piaget's theory of cognitive development, characterized by the ability to think abstractly, logically, and systematically.

Hypothetical-deductive Reasoning

A method of problem solving or decision-making that starts with a hypothesis or question and involves deducing specific predictions and testing them.

Adolescent Egocentrism

Adolescent egocentrism is a phase in teenage development characterized by a heightened focus on oneself and the belief that one's thoughts, feelings, and experiences are unique.

Imaginary Audience

A psychological concept wherein an individual believes their behavior or actions are the main focus of others’ attention, often prevalent in adolescence.