With properly designed internal control,the same employee should not be permitted to:
A)Sign checks and cancel supporting documents.
B)Receive merchandise and prepare a receiving report.
C)Prepare disbursement vouchers and sign checks.
D)Initiate a request to order merchandise and approve merchandise received.

Question

Quizplus · Accepted Answer

Proper internal control systems aim to segregate duties to prevent fraud and errors. Allowing the same employee to prepare disbursement vouchers and sign checks would combine the authorization of transactions with the custody of assets, violating the principle of segregation of duties and increasing the risk of fraud or misappropriation of funds.

With Properly Designed Internal Control,the Same Employee Should Not Be