If a Single Person Is Authorized to Both Order Goods

question 46

Multiple Choice

If a single person is authorized to both order goods and approve payments,the company may be defrauded in several ways.Which of the following scenarios would NOT be a possible consequence of this control weakness?

• A) The company may order goods priced above the current market price.
• B) The goods received may be damaged in shipment.
• C) The company may purchase more goods or higher quality goods than it needs.
• D) The company may purchase goods from a "related party" in order to enrich a relative of the company employee.

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Definitions:

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow, especially when the forearm is in a midposition between pronation and supination.

Biceps Brachii

A muscle of the upper arm that flexes the elbow and rotates the forearm, consisting of two heads that join on the radius.

Triceps Brachii

A muscle of the back of the upper arm responsible for extension of the elbow.

Anconeus

A small muscle located at the elbow, involved in extending the elbow and stabilizing the elbow joint.