In a properly designed internal control system,the same employee may be permitted to
A) Receive and deposit checks and also approve write-offs of customer accounts.
B) Approve vouchers for payment and also sign checks.
C) Reconcile the bank statements and also receive and deposit cash.
D) Sign checks and also cancel supporting documents.

Question

Quizplus · Accepted Answer

In a well-designed internal control system, the same employee can sign checks and cancel supporting documents as these tasks are related and do not pose a risk of misappropriation or error if performed by the same person. Other combinations involve conflicting duties that could lead to fraud or errors.

In a Properly Designed Internal Control System,the Same Employee May