Which of the Following Poses an Internal Control Problem

question 2

Multiple Choice

Which of the following poses an internal control problem?

• A)Physical inspection of inventory quantity and condition is outsourced to a firm that specializes in this service.
• B)Products are released from inventory after a warehouse employee and a shipping clerk sign the pick list.
• C)Sales representatives set up new customer accounts and determine their credit limits.
• D)When payments are received,they are sent to the cashier's office and remittance data are sent to the accounts receivable department.

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Definitions:

Accurate

Definition: Precisely correct or exact in details.

Cent

The smallest denomination of currency in many countries, representing 1/100th of the basic unit of currency.

Significant Figures

The number of digits in a value that contribute to its accuracy, typically used in scientific measurements.

Percent

A ratio or fraction out of 100 representing a part of a whole.