Which one of the following situations reflects a weak internal control system?
A) All employees are well supervised.
B) A single employee is responsible for comparing a receiving report to an invoice.
C) All employees must take their vacations.
D) A single employee is responsible for collecting and recording of cash.

Question

Quizplus · Accepted Answer

A weak internal control system allows for a single employee to have too much control over a specific task or process, such as the collection and recording of cash. This increases the risk of fraud or errors going undetected. All other options suggest a stronger internal control system, with employees being supervised or required to take vacations to prevent fraud, and the separation of duties for receiving reports and invoices.

Which One of the Following Situations Reflects a Weak Internal