In the following situation, which internal control procedure needs strengthening? Hofstra Services hired a new accountant to be responsible for the petty cash fund and the cash receipts. The newly hired employee has an accounting degree and a criminal record.
A)Documents and records
B)Assignment of responsibilities
C)Competent, reliable, and ethical personnel
D)Separation of duties

Question

Quizplus · Accepted Answer

The internal control procedure that needs strengthening is ensuring competent, reliable, and ethical personnel. Hiring someone with a criminal record for a position handling cash raises concerns about reliability and ethics.

In the Following Situation, Which Internal Control Procedure Needs Strengthening