Which of the Following Would Most Likely Be a Weakness

question 31

Multiple Choice

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a large computer system?

• A) Employee collusion possibilities are increased because portable computing devices from one vendor can process the programs of a system from different vendors.
• B) Computer operators may be able to remove hardware and software components and modify them at an off-site location.
• C) Programming errors result in all similar transactions being processed incorrectly because those transactions are processed under the same conditions.
• D) Certain transactions may be automatically initiated by the computerized processing system and management's authorization of these transactions may be implicit in its acceptance of the system design.

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Definitions:

Purchases Discounts

Purchases discounts are reductions in price given by suppliers to buyers for early payment of invoices.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller typically due to a return or an error in billing.

Recognition of Cost

The accounting principle that requires expenses to be recorded in the period in which they are incurred, regardless of when the payment is made.

Merchandise Sold

Merchandise sold refers to the goods that have been purchased by customers from a company, resulting in revenue.