Effective internal control in a small company that has an insufficient number of employees to permit proper division of responsibilities can BEST be enhanced by:
A) engaging a public accountant to perform monthly 'write-up' work.
B) employment of temporary personnel to aid in the separation of duties.
C) direct participation by the owner of the business in the record-keeping activities of the business.
D) delegation of full, clear-cut responsibility to each employee for the functions assigned to each.

Question

Quizplus · Accepted Answer

Direct participation by the owner of the business in record-keeping activities can enhance internal control in a small company that has an insufficient number of employees to permit proper division of responsibilities. The owner can directly oversee the record-keeping functions and ensure the accuracy and completeness of the records. This can also help in identifying any irregularities or errors that may occur. Engaging a public accountant or temporary personnel may not be feasible for a small company with limited resources. Delegation of responsibilities may not be practical in such a situation as it may result in a lack of separation of duties.

Effective Internal Control in a Small Company That Has an Insufficient