Establishing responsibilities and assigning both the recordkeeping and custody of assets to one person are important principles of internal control.

Question

Quizplus · Accepted Answer

Establishing a separation of duties, rather than assigning both recordkeeping and custody to one person, is an important principle of internal control. This helps to prevent errors and fraud by ensuring that no one person has complete control over a process or transaction.

Establishing Responsibilities and Assigning Both the Recordkeeping and Custody of Assets