Solved

Match the Risk with the Related Internal Control That Best

Question 248

Matching

Match the risk with the related internal control that best minimizes the risk.There is only one best answer for each.

Premises:

Responses:

The company is paying too much for its merchandise because it is ordered from an employee's friend who charges more than competitors.

Selection of Reliable Vendors

The unscrupulous bookkeeper, while unloading the delivery truck, steals inventory and then makes an adjusting entry to remove the inventory from the accounting records so as not to be detected.

Limiting access

Companies use sensors on their inventory to prevent customers from leaving the store with merchandise.

Segregation of duties

Premises:

The company is paying too much for its merchandise because it is ordered from an employee's friend who charges more than competitors.

The unscrupulous bookkeeper, while unloading the delivery truck, steals inventory and then makes an adjusting entry to remove the inventory from the accounting records so as not to be detected.

Companies use sensors on their inventory to prevent customers from leaving the store with merchandise.

Responses:

Selection of Reliable Vendors

Limiting access

Segregation of duties

Correct Answer:

Premises:

Responses:

The company is paying too much for its merchandise because it is ordered from an employee's friend who charges more than competitors.

The unscrupulous bookkeeper, while unloading the delivery truck, steals inventory and then makes an adjusting entry to remove the inventory from the accounting records so as not to be detected.

Companies use sensors on their inventory to prevent customers from leaving the store with merchandise.

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