Having one person responsible for the related activities of ordering merchandise receiving goods and paying for them
A) increases the potential for errors and fraud.
B) decreases the potential for errors and fraud.
C) is an example of good internal control.
D) is a good example of safeguarding the company's assets.

Question

Quizplus · Accepted Answer

Allowing one person to have control over ordering merchandise, receiving goods, and paying for them increases the risk for errors and fraud since there is no independent oversight or checks and balances in place. It is not an example of good internal control and does not necessarily safeguard the company's assets.

Having One Person Responsible for the Related Activities of Ordering