Proper segregation of duties reduces the opportunities to allow any employee to be in a position to both:
A)Journalize cash receipts and disbursements and prepare the financial statements.
B)Monitor internal controls and evaluate whether the controls are operating as intended.
C)Adopt new accounting pronouncements and authorize the recording of transactions.
D)Record and conceal fraudulent transactions in the normal course of assigned tasks.

Question

Quizplus · Accepted Answer

Proper segregation of duties ensures that no single employee has control over all aspects of a financial transaction, which reduces the risk of fraud by preventing any one person from being able to both commit and conceal fraudulent activities.

Proper Segregation of Duties Reduces the Opportunities to Allow Any