Which of the Following Is NOT an Appropriate Internal Control

question 138

Multiple Choice

Which of the following is NOT an appropriate internal control for cash receipts over the counter?

• A) A receipt is issued for each transaction to ensure that each sale is recorded.
• B) The store clerk deposits the cash in the bank.
• C) At the end of the day, the manager proves the cash by comparing the cash in the drawer against the machine's record of cash sales.
• D) The cash draw opens after the store clerk enters a transaction.

---

Definitions:

Residual Plot

A graphical representation where residuals (differences between observed and predicted values) of a regression analysis are plotted against predicted values to assess the fit of a model.

Trend Model

A statistical model that attempts to capture underlying patterns or trends in a dataset.

Annual Time-Series

A sequence of data points recorded or measured at successive time intervals, each interval being one year, used to analyze trends over time.

Moving Averages

A mathematical method that examines time series information by generating a sequence of means from various segments of the entire data set.