Which Internal Control Activity Is Followed When Inventory Storage Areas

question 6

Multiple Choice

Which internal control activity is followed when inventory storage areas are secured with limited access?

• A)Segregation of duties
• B)Safeguarding of assets and records
• C)Checks on recorded amounts
• D)Clearly defined authority and responsibility

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Definitions:

Punctuated Equilibrium Model

A theory suggesting that evolutionary development is marked by long periods of stability, punctuated by short, significant changes that result in major transformations.

Expectancy Theory

Theory that holds that people will choose certain behaviors over others with the expectation of a certain outcome.

Groupthink

A phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome, often sidelining alternative viewpoints.

Groupthink

A psychological phenomenon in which the desire for harmony and conformity in a group results in an irrational or dysfunctional decision-making outcome.