Which of the Following Is NOT a Control Over the Risk

question 8

Multiple Choice

Which of the following is NOT a control over the risk of unauthorized inventory purchases?

• A) Transaction authorization
• B) Automated purchase approval
• C) Scanner technology
• D) All of the above are controls over the risk of unauthorized inventory purchases.

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Definitions:

Financial Records

Documents and files which capture all financial transactions of a business or individual.

Independent Audit

An examination of an organization's financial records, processes, and statements by an external, unbiased auditor to ensure accuracy and compliance with laws and regulations.

Working Capital Statement

A financial statement that shows a company's current assets minus its current liabilities, indicating the short-term financial health and operational efficiency.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.