Which of the Following Is an Attribute of the Internal

question 94

Multiple Choice

Which of the following is an attribute of the internal control procedure-assignment of responsibilities?

• A) To validate their accounting records, a company should have an audit by an external accountant.
• B) The company should separate the custody of assets from accounting.
• C) The external auditors will monitor internal controls.
• D) Each position has clearly assigned responsibilities.

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Definitions:

Picking

Retrieving materials from storage and bringing them to manufacturing to fulfill a production order, or retrieving finished goods from storage and preparing them for shipment to fulfill a customer order.

Quality Inspection

An evaluative process where products or services are examined and tested to ensure they meet specified standards and requirements before being delivered to customers.

Logistics Functions

Activities involved in the movement and storage of goods from point of origin to point of consumption, including transportation, warehousing, and inventory management.

Transportation Management

The planning, execution, and optimization of the physical movement of goods, ensuring the efficient transit of products from origin to destination.