One employee can create vendors, approve invoices, and issue payments. What weakness exists?

California C-10 exam practice question · Business Finances

One employee can create vendors, approve invoices, and issue payments. What weakness exists?

AExcessive jobsite supervision
Poor separation of duties
CInsufficient advertising
DToo much project documentation

Why B is correct

Concentrating vendor setup, approval, and payment enables error or fraud without detection. Segregation, approval thresholds, reconciliations, and audit trails strengthen control.

Practice 34 more Business Finances questions

Timed mock exams, a wrong book and flashcards — one subscription covers every contractor exam line.

Start studying free

A profitable contractor cannot meet payroll because receivables are late and suppliers require payment. What does this demonstrate?
An invoice is overdue and the owner disputes its backup. What is the best first control?
How should contract retention be treated in cash planning?
What does an income statement primarily show?
Why should a contractor forecast income, sales or use, and payroll tax obligations separately from general cash?
Why should withheld payroll taxes be segregated and remitted on schedule?

One employee can create vendors, approve invoices, and issue payments. What weakness exists?

One employee can create vendors, approve invoices, and issue payments. What weakness exists?

More Business Finances questions