If a Single Person Is Authorized to Both Order Goods

question 46

Multiple Choice

If a single person is authorized to both order goods and approve payments,the company may be defrauded in several ways.Which of the following scenarios would NOT be a possible consequence of this control weakness?

• A) The company may order goods priced above the current market price.
• B) The goods received may be damaged in shipment.
• C) The company may purchase more goods or higher quality goods than it needs.
• D) The company may purchase goods from a "related party" in order to enrich a relative of the company employee.

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Definitions:

Mechanic

A skilled worker specialized in constructing, repairing, or maintaining machinery, vehicles, or other technical systems.

Brakes

Devices used to slow down or stop a vehicle by applying pressure against a moving part to create friction.

Genuine Leroy Neiman

Refers to an authentic piece of artwork created by Leroy Neiman, an American artist known for his vibrant and colorful portrayals of athletes and sporting events.

Express Warranty

A guarantee explicitly stated by a seller about the quality, functionality, or condition of a product.