In a Good System of Internal Control, the Person Who

question 98

True/False

In a good system of internal control, the person who initiates a transaction should be allowed to effectively control the processing of the transaction through its final inclusion in the accounting records.

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Definitions:

Power of Attorney

is a legal document that grants one person the authority to act on behalf of another person in legal or financial matters.

Express Authority

Legal power granted explicitly to an agent or representative by a principal, allowing them to act on the principal's behalf.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

Liability

The state of being responsible for something, especially by law.