Segregation of duties can be the source of IT material weaknesses when assessing the effectiveness of internal controls over the company's accounting information system.

Question

Quizplus · Accepted Answer

Segregation of duties is a fundamental aspect of internal controls, particularly in accounting information systems. The absence of proper segregation of duties can increase the risk of errors, fraud, and misuse of confidential information, which can compromise the integrity of financial reporting. Therefore, a lack of segregation of duties can be considered as a material weakness in the company's IT internal controls.

Segregation of Duties Can Be the Source of IT Material