Which of the Following Is Not a Sound Internal Control

question 74

Multiple Choice

Which of the following is not a sound internal control procedure for cash disbursements?

• A)Paying with a check to provide a record of the payment
• B)Designating an authorized check-signer who has no cash record keeping responsibilities
• C)Marking supporting documents when paid in order to prevent duplicate payment
• D)Paying with petty cash to expedite the payment process

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Definitions:

Cumulative Probability

The probability that a random variable is less than or equal to a specific value, representing the accumulation of individual probabilities.

Demand Probability

The likelihood or chance of a product or service being purchased at various levels of demand within a specific period.

Expected Demand

The amount of product or service that consumers are projected to purchase at a given price over a specified period.

Monte Carlo Simulation

A computational technique that uses random sampling and statistical modeling to estimate mathematical functions and simulate the behavior of complex systems.