Which of the Following Situations Indicates a Potential Material Weakness

question 48

Multiple Choice

Which of the following situations indicates a potential material weakness in internal control over acquisitions and expenditures?

• A)Purchase orders are not prepared for services that are acquired directly under authorization of department heads.
• B)The person who approves purchases also signs the cheques.
• C)Unacceptable goods are not recorded on receiving reports.
• D)The person who signs the cheques also stamps "paid" on the vouchers.

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Definitions:

Covariance

A measure indicating the extent to which two random variables change in tandem.

Covariance

A measure that indicates the extent to which two variables change together, showing if increases in one variable correspond to increases or decreases in another.

Degrees Of Freedom

The number of values in the calculation of a statistic that are free to vary, often related to the sample size.

Pearson Correlation

A measure of the linear correlation between two variables, giving a value between -1 and 1 inclusive, where 1 is total positive linear correlation, 0 is no linear correlation, and -1 is total negative linear correlation.