Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them
A) increases the potential for errors and irregularities.
B) decreases the potential for errors and irregularities.
C) is an example of good internal control.
D) is a good example of safeguarding the company's assets.

Question

Quizplus · Accepted Answer

Having one person responsible for all these activities increases the risk of errors and irregularities, as there is no separation of duties or oversight. It creates an opportunity for fraud or theft to occur, as one person has too much control and power over the process. Good internal control would involve separating these responsibilities and having different people responsible for each activity for better checks and balances.

Having One Person Responsible for the Related Activities of Ordering