Which of the Following Could Signal Internal Control Problems Within

question 66

Multiple Choice

Which of the following could signal internal control problems within the accounting system?
(1) Safeguarding inventory in a locked warehouse
(2) Abuse of alcohol or drugs
(3) Gaps in transactions numbers
(4) Operating style of management
(5) Sudden increase in slow payments

• A) 1 and 2
• B) 3 and 5
• C) 2 and 4
• D) 1 and 3

---

Definitions:

Directly Attributable Costs

Expenses that can be directly linked to the acquisition, construction, or production of an asset, making the asset ready for its intended use.

Mining Exploration

The process of searching for minerals or precious metals in the earth's surface, involving geophysical, geochemical, and geological methods.

Intangible Asset

An asset lacking physical substance but offering economic benefits to its owner, such as patents, copyrights, and trademarks.

Capitalised

Expenses or costs that are added to the value of an asset, instead of being treated as an expense in the period they were incurred.