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

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Definitions:

Express Repudiation

The clear and unequivocal refusal to fulfill one's duties or obligations under a contract.

Specific Performance

A legal remedy requiring a party to execute a contract according to its precise terms, often applied in cases where monetary damages are insufficient.

Monetary Judgement

A legal determination requiring a party to pay a specified sum of money to another.

Express Repudiation

The explicit rejection or refusal to fulfill a duty or obligation set forth in a contract.