In the Following Situation,which Internal Control Procedure Needs Strengthening

question 152

Multiple Choice

In the following situation,which internal control procedure needs strengthening?
- At Hofstra Services,the operations accountant is responsible for safeguarding and maintaining the pipe inventory and also to record inventory transactions into the journal.A separate accounting clerk keeps records of the cash receipts and payments.The treasurer signs checks and approves contracts.

• A) Assignment of responsibilities
• B) Competent, reliable, and ethical personnel
• C) Separation of duties
• D) Documents

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Definitions:

Presidential Discretion

The authority and freedom of action granted to the President in areas not explicitly defined by the constitution or statutes, often in the context of national security or foreign policy.

Transfer Payments

Payments made by the government to individuals through various social benefit programs, without any goods or services being received in return.

Social Security Benefits

Government programs designed to provide financial support to individuals during retirement, disability, or upon death, ensuring income for beneficiaries.

Budget Deficit

Occurs when a government's expenditures exceed its revenues during a specific period of time, leading to borrowing or debt accumulation.