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:

Phenylketonuria

A genetic disorder characterized by the body's inability to break down the amino acid phenylalanine, leading to harmful accumulations.

Phenylalanine

An essential amino acid that is a building block of proteins, not synthesized by the human body, and thus must be obtained from the diet.

Tay-Sachs Disease

A serious genetic disease in which abnormal lipid metabolism in the brain causes mental deterioration in affected infants and young children; inheritance pattern is autosomal recessive.

Autosomal Recessive

A mode of inheritance in which a trait or disorder is expressed in individuals who have two copies of a mutant gene on one of the non-sex chromosomes (autosomes).