Joe is warehouse custodian and also maintains the accounting records of the inventory held at the warehouse.Which control activity is violated?
A)documentation
B)independent checks of performance
C)segregation of duties
D)authorization of transactions and activities

Question

Quizplus · Accepted Answer

Joe's dual role as both a custodian and accountant violates the segregation of duties control activity, which requires different individuals to be responsible for different aspects of a process to reduce the risk of errors, fraud, or other types of misuse. By combining both roles, Joe has too much control over the inventory and accounting processes, which increases the risk of errors or fraud going undetected.

Joe Is Warehouse Custodian and Also Maintains the Accounting Records