In the Following Situation, Which Internal Control Procedure Needs Strengthening

question 74

Multiple Choice

In the following situation, which internal control procedure needs strengthening? The controller's duties at New Era Inc. 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

Recognize the conditions necessary for a valid sub-bailment.

Identify the application of res ipsa loquitur in bailment cases.

Understand the distinction between goods and services, including examples and characteristics.

Identify the differences between durable and nondurable goods.

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Definitions:

Social Responsibility Audit

A measure of an organization's performance in various areas of social responsibility.

Systematic Assessment

An organized evaluation process to systematically analyze and review something in detail.

Corporate Social Responsibility

The practice by companies to act ethically and contribute to economic development, work life quality, local community, and society at large in a sustainable manner.

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled.