Authorization Procedures include that all senior members of the accounting department have the authority to record any transaction.

Question

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Authorization procedures involve setting clear limits and responsibilities for recording transactions to prevent errors or fraud. Allowing all senior members of the accounting department to record any transaction without proper checks and balances could lead to issues with accuracy and accountability. Instead, authorization should be delegated based on defined roles and responsibilities, with appropriate oversight and review processes in place.

Authorization Procedures Include That All Senior Members of the Accounting