To Avoid Potential Errors and Fraud a Well-Designed Internal Control

question 24

Multiple Choice

To avoid potential errors and fraud a well-designed internal control in the accounts payable area should include a separation of which of the following functions?

• A)Cash disbursements and invoice verification.
• B)Invoice verification and merchandise ordering.
• C)Physical handling of merchandise received and preparation of receiving reports.
• D)Check signing and cancellation of payment documentation.

Understand the legal implications and enforceability of exculpatory clauses.

Distinguish between agreements that are void due to violation of public policy and those that are legally binding.

Recognize the impact of an individual's bargaining power on the enforceability of agreements.

Understand the legal treatment of agreements involving attempts to influence public officials or legislation.

---

Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages for nonperformance.

Monetary Damages

Money claimed by or ordered paid to a party to compensate for injury or loss caused by the wrong of the opposite party.

Lemon Laws

Statutes that provide remedies to consumers for products, typically vehicles, that repeatedly fail to meet standards of quality and performance.

Defective Parts

Components or elements of a product that are faulty, flawed, or do not meet specified standards of quality.