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

Increases the potential for fraud and error

Explanation:

Internal controls refer to control mechanism implemented by management so as to ensure efficient operations and to detect and check material misstatements and frauds on timely basis.

Internal check refer to one of the means of implementing internal controls wherein duties and responsibilities are segregated in such a manner that no individual has the authority to process a transaction from it's beginning to it's end and whereby, work performed by an individual automatically comes into the scrutiny of another.

In the given case, the principle of internal check as a means to implement internal controls is violated since one person is assigned the responsibility to order, receive, pay for the goods.

This increases the possibility of a potential fraud and error since the individual possesses full authority to effect the transaction and may manipulate records since no other individual can watch on him.