If the Same Employee Is Responsible for Authorizing a Business

question 60

Multiple Choice

If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?

• A)A good audit trail
• B)Separation of duties
• C)Internal review of controls
• D)Competent employees

---

Definitions:

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and taxes.

Client-visits

Meetings or engagements with clients outside the company's premises for business discussions or services.

Activity Variance

The variance between the projected budget for a task and the actual expenses incurred.

Budgeting

The process of creating a plan to spend your money by estimating the revenue and expenses for a future period, used as a financial guide.