Which of the following sets of duties would ordinarily be considered basically incompatible in terms of good internal control? Being able to:
i. Authorize a new supplier and authorising the payment invoices from suppliers
ii. Enter details of new employee on the master file database and prepare the payroll
iii. Record cash receipts in the Cash Book and bank the monies
iv. Maintain the Receivables ledger and authorise credit limits for customers
A) All of the above
B) i, ii and iv only
C) i, ii, iii only
D) ii, iii and iv only

Question

Which of the following sets of duties would ordinarily be considered basically incompatible in terms of good internal control? Being able to:
 i. Authorize a new supplier and authorising the payment invoices from suppliers
 ii. Enter details of new employee on the master file database and prepare the payroll
 iii. Record cash receipts in the Cash Book and bank the monies
 iv. Maintain the Receivables ledger and authorise credit limits for customers
A) All of the above
B) i, ii and iv only
C) i, ii, iii only
D) ii, iii and iv only

Quizplus · Accepted Answer

Incompatible duties are those that, if combined, could allow an individual to commit and conceal errors or fraud. Authorizing suppliers and payments (i), entering employee details and preparing payroll (ii), and maintaining receivables and authorizing credit limits (iv) are incompatible because they allow for potential manipulation without oversight.

Which of the Following Sets of Duties Would Ordinarily Be