In the Following Situation,which Internal Control Procedure Needs Strengthening

question 71

Multiple Choice

In the following situation,which internal control procedure needs strengthening?
- The controller's duties include approving bank reconciliations,approving general journal entries,hiring administrative staff,and approving various types of administrative expenses.She needs new computer equipment for the accounting office,but there are no guidelines specifying whether she can approve purchases of office equipment.

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

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Definitions:

Formation of Law

The process through which legal rules and standards are created, implemented, and enforced in a society.

Stare Decisis

The legal principle of determining points in litigation according to precedent or previous judicial decisions.

Common Law

A body of legal precedents derived from judicial decisions, as opposed to statutes or constitutions.

Erroneous Decisions

Mistaken or incorrect judgments made by individuals or bodies in positions of authority.