Which of the Following Poses an Internal Control Problem

question 49

Multiple Choice

Which of the following poses an internal control problem?

• A)Physical inspection of inventory quantity and condition is outsourced to a firm that specializes in this service.
• B)Products are released from inventory after a warehouse employee and a shipping clerk both sign the pick list.
• C)Sales representatives have authority to increase customers' credit limits in $1,000 increments.
• D)When customer payments are received in the mail,checks are sent to the cashier's office and remittance advices are sent to the accounts receivable department.