In the Following Situation, Which Internal Control Procedure Needs Strengthening

question 121

Multiple Choice

In the following situation, which internal control procedure needs strengthening? At Syria Services, the accounting clerk fills out unnumbered purchase order forms for purchases of supplies. An operations engineer completes the form with a detailed description of the supplies being ordered, and the operations manager approves the purchase and passes the purchase order back to the accountant for processing.

• A)assignment of responsibilities
• B)competent, reliable, and ethical personnel
• C)separation of duties
• D)documents

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Definitions:

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and no single entity can control the market price of goods or services.

Lowest Price

The minimum price at which a product or service is offered in the market, typically influenced by competition and cost structures.

Competitive Firm

A company that operates in a market where it has to compete with other firms for customers, setting prices based on market demand and supply.

Competitive Firm

A business operating in a market where it has little to no control over the price of its products because of competition from other firms.