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LM Enterprises Provides Temporary Office Staff to Businesses in Its

Question 58

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LM Enterprises provides temporary office staff to businesses in its geographic area. In LM's operations, "candidate" refers to a person seeking a position; "client" refers to a business seeking temporary staff. "Employee" refers to a member of LM's staff. Several risks associated with LM and potential internal controls are listed below

Match each risk with the internal control that will best address it; use each item on the right exactly once.

Premises:
A candidate does not have the necessary skills to fulfill a client's request.
A candidate takes office supplies for personal use.
A member of LM's accounting staff pays an invoice for supplies twice.
A purchasing employee uses company funds to buy personal items.
Candidate information is lost or corrupted.
Candidates falsify credentials such as college degrees and certifications.
Clients fail to pay amounts due LM on time.
Employees give inaccurate information to a candidate regarding company policies.
LM cannot fill a client's request for a candidate.
One of LM's human resources staff hires an unqualified friend as an employee.
Responses:
"Paid" stamp.
Background and reference checks.
Credit checks and collections staff.
Daily file backups.
Detailed interviews before accepting a request for a candidate.
Locked doors.
Personnel manager review.
Pre-employment testing.
Procedures manual.
Segregation of duties.

Correct Answer:

A candidate does not have the necessary skills to fulfill a client's request.
A candidate takes office supplies for personal use.
A member of LM's accounting staff pays an invoice for supplies twice.
A purchasing employee uses company funds to buy personal items.
Candidate information is lost or corrupted.
Candidates falsify credentials such as college degrees and certifications.
Clients fail to pay amounts due LM on time.
Employees give inaccurate information to a candidate regarding company policies.
LM cannot fill a client's request for a candidate.
One of LM's human resources staff hires an unqualified friend as an employee.
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