Which of the following situations is an example of an inherent limitation of Internal Control? A programming error in the design of an automated controls allows an employee to give himself an unauthorized pay increase. A fraud scheme where two employees agreed to collusion whereby an employee orders personal goods and his supervisor who is on in the scheme, signs the checks to pay for the goods. Management's failure to enforce control policies surrounding access to inventory allows employees to steel assets. A lack of physical controls over the safeguarding of assets allows an employee to steal company assets.
Which of the following situations is an example of an inherent limitation of Internal Control? A programming error in the design of an automated controls allows an employee to give himself an unauthorized pay increase. A fraud scheme where two employees agreed to collusion whereby an employee orders personal goods and his supervisor who is on in the scheme, signs the checks to pay for the goods. Management's failure to enforce control policies surrounding access to inventory allows employees to steel assets. A lack of physical controls over the safeguarding of assets allows an employee to steal company assets.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 30
Which of the following situations is an example of an inherent limitation of Internal Control?
A programming error in the design of an automated controls allows an employee to give himself an unauthorized pay increase. |
||
A fraud scheme where two employees agreed to collusion whereby an employee orders personal goods and his supervisor who is on in the scheme, signs the checks to pay for the goods. |
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Management's failure to enforce control policies surrounding access to inventory allows employees to steel assets. |
||
A lack of physical controls over the safeguarding of assets allows an employee to steal company assets. |
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