The Control Plan ______________________________ Assumes That There Is a Segregation

question 14

Short Answer

The control plan ______________________________ assumes that there is a segregation of duties between the personnel who create vendor records and those that create and approve POs, record accounts payable, and approve payments.

---

Definitions:

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Perpetual Inventory System

An accounting method where inventory levels are updated continuously as transactions occur.

Gross Method

An accounting practice where discounts on purchases or sales are recorded gross, without deducting any purchase or sales discounts.

Inventory

The collective sum of all products and materials possessed by a company intended for either resale or production purposes, encompassing raw materials, unfinished products, and completed items.