The separation of the responsibility for custody of cash from the responsibility for reconciling the bank accounts will help to minimize the related risk of:
A)Wrong customers
B)Incorrect amounts
C)Invalid bank account
D)Invalid transactions

Question

Quizplus · Accepted Answer

Separating the responsibility for custody of cash from the responsibility for reconciling bank accounts reduces the risk of incorrect amounts being recorded in the accounts. This can happen when the same person responsible for handling cash is also responsible for reconciling bank accounts, as they may manipulate the records to cover up any discrepancies or errors. Therefore, having separate individuals responsible for these tasks helps to ensure greater accuracy and reliability in the accounting process. The other options provided are not directly related to this specific risk.

The Separation of the Responsibility for Custody of Cash from the Responsibility