Which of the following is not a component of internal control in financial areas?
A)Approval authority
B)Good records maintenance
C)Consolidation of duties
D)Safeguards

Question

Quizplus · Accepted Answer

Consolidation of duties is not a component of internal control in financial areas. Instead, it is a potential weakness as it concentrates too much power and responsibility in one person or department. The other options are all key components of internal control in financial areas: approval authority ensures that all transactions are properly authorized; good records maintenance helps ensure accurate and complete financial information; and safeguards protect against errors and fraud.

Which of the Following Is Not a Component of Internal