Which of These Is Not a Good Internal Control Practice

question 34

Multiple Choice

Which of these is not a good internal control practice?

• A)The use of the periodic inventory system for stock control
• B)The use of passwords for computer access
• C)The pre-numbering of documents
• D)Taking out a trial balance

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Definitions:

Professional Corporation

A type of business entity authorized by state law that is organized for the purpose of providing professional services, such as legal or medical services.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Limited Liability

A legal principle where a person's financial risk in a business is restricted to their investment amount.

Paralegals

Legal assistants who perform various tasks to support attorneys, such as conducting legal research, drafting documents, and organizing files, but are not licensed to practice law.