An effective system of internal control requires that individuals never take vacations.

Question

Quizplus · Accepted Answer

This statement is false. In fact, a key aspect of an effective system of internal control is to ensure that duties are properly segregated and that no one person has too much control or authority. Taking regular vacations is an important way to ensure that this segregation of duties is maintained and to prevent fraud or errors from going undetected. Additionally, having different individuals cross-train and temporarily assume each other's responsibilities during vacations can also help to strengthen internal controls.

An Effective System of Internal Control Requires That Individuals Never