Which situation indicates a weak internal control structure?
A)the mail room clerk authorizes credit memos
B)the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
C)the warehouse clerk obtains a signature before releasing goods for shipment
D)the accounts receivable clerk prepares customer statements every month

Question

Quizplus · Accepted Answer

The mail room clerk should not have the authority to authorize credit memos as this creates a potential for fraud and manipulation of financial records. This weakness could be exploited by an employee with malicious intent.

Which Situation Indicates a Weak Internal Control Structure