For a strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

Question

Quizplus · Accepted Answer

Separation of duties is a key aspect of strong internal controls, and dividing cash-related duties among different employees helps prevent potential fraud or errors. For example, one employee may be responsible for receiving and depositing cash while another employee is responsible for recording and reconciling cash transactions.

For a Strong Internal Control System Over Cash, It Is