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:

Immanuel Kant

A German philosopher from the 18th century, known for his critical contributions to the fields of epistemology, ethics, and aesthetics.

Leaky Sink Faucet

A defective faucet causing unwanted discharge of water due to wear, damage, or improper installation.

Perceptual Organization

Refers to the process by which the human mind interprets and organizes sensory information to perceive a coherent, structured world.

Visual Cortex

The part of the cerebral cortex that receives and processes sensory nerve impulses from the eyes.