It is discovered that a bank does not require two signatures on cashier's checks exceeding $500,000. This is an example of:
A) Analytical anomalies.
B) Accounting anomalies.
C) Faulty journal entries.
D) Internal control weaknesses.

Question

Quizplus · Accepted Answer

A: Incorrect - These are relationships that are too unusual to be believable; the bank procedure involves a control, not a specific unrealistic transaction.
B: Incorrect - These would include problems with source documents, faulty journal entries, and inaccuracies in ledgers; the signatures don't involve these categories.
C: Incorrect - As mentioned above, this is an example of an accounting anomaly.
D: Correct - The signature problem could be a lack of segregation of duties or lack of independent checks - both examples of internal control weakness.

It Is Discovered That a Bank Does Not Require Two