As an In-Charge Auditor, You Are Reviewing a Summary of Control

question 27

Multiple Choice

As an in-charge auditor, you are reviewing a summary of control weaknesses in cash disbursement procedures. Which one of the following weaknesses, standing alone, should cause you the least concern?

• A)Checks are signed by only one person.
• B)Signed checks are distributed by the controller to approved payees.
• C)Treasurer fails to establish validity of names and addresses of check payees.
• D)Cash disbursements are made directly out of cash receipts.

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Definitions:

Colostomy

A surgical procedure to create an opening from the colon to the surface of the abdomen, allowing waste to bypass the damaged part of the colon.

Ileostomy

A surgical procedure that creates a stoma, or opening, in the abdomen to divert the ileum's contents outside the body.

Reddish-pink Stoma

A sign describing the normal appearance of a stoma, indicative of healthy tissue around a surgical opening.

Erythema

Redness of the skin caused by capillary congestion, often resulting from injury or irritation.