Which 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 ordering inventory and receiving it from the shipper.

Question

Quizplus · Accepted Answer

A weak internal control system is reflected when there is a lack of segregation of duties. Having a single employee responsible for both ordering inventory and receiving it from the shipper creates the opportunity for that employee to commit fraud or errors without being detected.

Which of the Following Situations Reflects a Weak Internal Control