Which one of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mail room?
A) The cashier prepares the daily deposit.
B) The cashier makes the daily deposit at a local bank.
C) The cashier posts the receipts to the accounts receivable subsidiary ledger cards.
D) The cashier endorses the checks.

Question

Quizplus · Accepted Answer

The cashier posting receipts to the accounts receivable subsidiary ledger cards is considered an incompatible operation because it involves both the custody of assets (handling cash/checks) and the recording of those assets, which should be separated to ensure proper internal control and reduce the risk of fraud or errors.

Which One of the Following Would the Auditor Consider to Be