In the Following Situation, Which Internal Control Procedure Needs Strengthening

question 12

Multiple Choice

In the following situation, which internal control procedure needs strengthening? Syria Services hired a new accountant to be responsible for the petty cash fund and the cash receipts. The newly hired employee has an accounting degree and a criminal record.

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

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Definitions:

Interperiod Tax Allocation

A method used in accounting to distribute income taxes over different periods due to temporary timing differences between when items are recognized for financial reporting and tax purposes.

Intraperiod Tax Allocation

The allocation of tax expense or benefit among different components of comprehensive income, such as operating income and other comprehensive income.

Deferred Tax Assets

Financial assets that result from differences between the tax base of assets or liabilities and their carrying amount in financial statements, which will result in deductible amounts in future periods.

Deferred Tax Liabilities

A tax obligation recorded on a company's balance sheet that results from temporary differences between the tax basis of assets or liabilities and their reported amount in the financial statements.