Which Situation Indicates a Weak Internal Control Structure

question 49

Multiple Choice

Which situation indicates a weak internal control structure?

• A)the mail room clerk authorizes credit memos
• B)the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
• C)the warehouse clerk obtains a signature before releasing goods for shipment
• D)the accounts receivable clerk prepares customer statements every month

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Definitions:

Law of Equity

A branch of law that supplements common law by providing remedies and justice that are not available in traditional legal systems, focusing on fairness.

Common Law Courts

Courts that base their decisions on precedents or judicial rulings rather than written statutes.

Stare Decisis

A legal principle that obligates courts to follow historical cases when making a ruling on a similar current or future case.

Common Law

A legal system based on custom, court rulings, and precedent rather than statutory laws.