If a single person is authorized to both order goods and approve payments,the company may be defrauded in several ways.Which of the following scenarios would NOT be a possible consequence of this control weakness?
A) The company may order goods priced above the current market price.
B) The goods received may be damaged in shipment.
C) The company may purchase more goods or higher quality goods than it needs.
D) The company may purchase goods from a "related party" in order to enrich a relative of the company employee.

Question

Quizplus · Accepted Answer

The scenario of goods being damaged during shipment is not directly related to the control weakness of a single person having both ordering and payment approval authorization. It can happen even in companies with robust internal controls. The other scenarios are all potential consequences of this control weakness.

If a Single Person Is Authorized to Both Order Goods