Which Situation Indicates an Internal Control Risk in the General

question 28

Multiple Choice

Which situation indicates an internal control risk in the general ledger/financial reporting systems (GL/FRS) ?

• A)the employee who maintains the cash journal computes depreciation expense
• B)the cash receipts journal voucher is approved by the Treasurer
• C)the cash receipts journal vouchers are prenumbered and stored in a locked safe
• D)the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger

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Definitions:

Negotiations

The process by which two or more parties with differing objectives discuss an issue in an attempt to reach a compromise or agreement.

Longhouse

A type of long, proportionately narrow, single-room building traditionally built by peoples of the indigenous tribes in North America.

Cultural Practices

Refers to the shared ways of life, including traditions, languages, rituals, and customs, that characterize a particular society or group.

Agricultural Practices

Methods and techniques used in farming and livestock raising to increase productivity and sustainability, including crop rotation, irrigation, and use of fertilizers.