Which of the following related to a company's control procedures?
(1) Separating responsibilities for related operations
(2) Safeguarding inventory in a locked storeroom
(3) Identifying a sudden increase in slow payments
(4) Operating style of management
(5) Requiring employees to take vacations

A) 1, 2, and 3
B) 1, 3, and 5
C) 1, 2, and 4
D) 1, 2, and 5

Question

Which of the following related to a company's control procedures? 
(1) Separating responsibilities for related operations
(2) Safeguarding inventory in a locked storeroom
(3) Identifying a sudden increase in slow payments
(4) Operating style of management
(5) Requiring employees to take vacations
 
A) 1, 2, and 3
B) 1, 3, and 5
C) 1, 2, and 4
D) 1, 2, and 5

Quizplus · Accepted Answer

1, 2, and 5 are related to a company's control procedures. Separating responsibilities for related operations prevents fraud and errors, safeguarding inventory protects assets, and requiring employees to take vacations can reveal fraudulent activities that might otherwise go unnoticed.

Which of the Following Related to a Company's Control Procedures