When segregation of duties cannot be effectively implemented because the organization is too small, we may rely on a more intensive implementation of other control plans such as personnel control plans. This is called:
A) collusion controls
B) compensatory controls
C) authorizing controls
D) inventory controls

Question

Quizplus · Accepted Answer

Compensatory controls are put in place when segregation of duties cannot be implemented effectively. In this case, a more intensive implementation of personnel control plans, such as background checks, rotation of tasks, and dual approvals, can be put in place to compensate for the lack of segregation of duties. Collusion controls are designed to prevent collusion between employees to commit fraud. Authorizing controls typically refer to controls that ensure approvals are obtained before certain actions can be taken. Inventory controls, on the other hand, refer to controls over physical inventory items.

When Segregation of Duties Cannot Be Effectively Implemented Because the Organization