A Very Small Company Would Have the Most Difficulty in Implementing

question 82

Multiple Choice

A very small company would have the most difficulty in implementing which of the following internal control activities?

• A)Sound personnel procedures
• B)Periodic independent verification
• C)Limited access to assets
• D)Separation of duties

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Definitions:

Supporting Documents

Supporting documents are the paper or digital records that provide evidence for transactions recorded in accounting books.

Voucher System

An internal control system designed to control a company’s cash payments.

Stock Certificate

Formal document issued to investors in a corporation that shows the number of shares purchased.

Voucher System

A method of accounting in which each transaction is recorded through the use of a document, or voucher, ensuring expenditures are authorized and recorded accurately.