A small business has four employees, including the owner of the business, working for the business on a daily basis processing cash receipts, making cash disbursements, processing payroll, and invoicing customers. In this situation, separation of duties is impossible.

Question

Quizplus · Accepted Answer

Although it may not be possible to completely separate all duties among four employees, some degree of separation can still be achieved. For example, the owner can be responsible for approving transactions, while one employee handles cash receipts and another employee handles cash disbursements. The fourth employee can be responsible for processing payroll and invoicing customers. This way, no one person has complete control over all aspects of the financial transactions.

A Small Business Has Four Employees, Including the Owner of the Business