Which of the Following Duties Could Be Performed by the Same

question 27

Multiple Choice

Which of the following duties could be performed by the same individual without violating segregation of duties controls?

• A) approving accounting software change requests and testing production scheduling software changes
• B) programming new code for accounting software and testing accounting software upgrades
• C) approving software changes and implementing the upgraded software
• D) managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices

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Definitions:

Strong Form

A hypothesis suggesting that market prices fully reflect all information, both public and private, implying no one can consistently achieve higher returns.

Market Efficiency

A concept that describes how well prices in financial markets reflect all available and relevant information.

Insider Information

Private knowledge about a public company that could provide a financial advantage in the stock market if it were made public.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.