The Employee in Charge of Authorizing Credit to the Company's

question 55

Multiple Choice

The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would

• A) constitute a deficiency in operation of internal controls.
• B) constitute a deficiency in design of internal controls.
• C) constitute a deficiency of management.
• D) not constitute a deficiency.