Consider the flowchart below as you respond to the question: Systems flowcharts can be used in AIS work to evaluate internal controls.Which of the following statements is most true based on the systems flowchart above?
A)Allowing the salesperson to approve customer credit weakens internal control.
B)Using an electronic database for customer data weakens internal control.
C)Both allowing the salesperson to approve customer credit weakens internal control and using an electronic database for customer data weakens internal control.
D)Neither allowing the salesperson to approve customer credit weakens internal control nor using an electronic database for customer data weakens internal control.

Question

Consider the flowchart below as you respond to the question:  Systems flowcharts can be used in AIS work to evaluate internal controls.Which of the following statements is most true based on the systems flowchart above?
A)Allowing the salesperson to approve customer credit weakens internal control. 
B)Using an electronic database for customer data weakens internal control. 
C)Both allowing the salesperson to approve customer credit weakens internal control and using an electronic database for customer data weakens internal control. 
D)Neither allowing the salesperson to approve customer credit weakens internal control nor using an electronic database for customer data weakens internal control.

Quizplus · Accepted Answer

Allowing the salesperson to approve customer credit weakens internal control by removing the internal control of credit approval from a separate department or individual. This creates a potential conflict of interest for the salesperson who may approve credit for the customer without ensuring that the customer meets the credit criteria.

Consider the Flowchart Below as You Respond to the Question