The Three Types of Functions That Normally Should Be Segregated

question 40

Multiple Choice

The three types of functions that normally should be segregated to promote internal control are

• A) recording transactions, authorizing transactions, and approval.
• B) authorizing transactions, approving transactions, and custody of assets.
• C) authorizing transactions, recording transactions, and custody of assets.
• D) authorizing transactions, inputting data, and outputting data.

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Definitions:

Risk-Utility Analysis

An assessment method used to determine if the benefits of a certain action or product outweigh its risks, often used in product liability law.

Sperry-New Holland

A brand known for its agricultural machinery and equipment, historically significant in the mechanization of agriculture.

Unreasonably Dangerous

Describes a product or condition that poses a risk of harm beyond what would be expected by the ordinary consumer.

Breach Of Warranty

The violation of a promise or guarantee made about the quality or condition of a product or service, which can give rise to legal action for damages.