All of the Following Would Be Considered Internal Control Weaknesses

question 186

Multiple Choice

All of the following would be considered internal control weaknesses except

• A)the practice of shipping goods to customers right before year-end even though the customers had not ordered them.
• B)the person who opens the mail also makes the journal entry to record any customer payments received in the mail.
• C)it takes two days to get a check written because of the approvals required.
• D)no physical inventory is ever taken to confirm the amount of inventory recorded in the accounting records.

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Definitions:

Post Dated Cheques

Cheques written with a future date, not valid or actionable until that date, often used to ensure future payments.

Money Orders

Money orders are a method of payment that allows individuals to transfer or send pre-specified amounts of money securely, often used as an alternative to checks or cash.

Control Activity

Actions, policies, or procedures that are part of an entity's internal control system designed to ensure operational effectiveness and financial reporting accuracy.

Surprise Audits

Unscheduled audits not known in advance by the entity being audited, used to ensure accuracy and compliance with financial policies and regulations.