Segregation of duties ________.
A)should always be considered an important internal control
B)should be of primary concern to larger, more complex companies
C)should be instituted by the auditor
D)refers to ensuring employees take on as many tasks as possible, to save labor costs

Question

Quizplus · Accepted Answer

Segregation of duties is an important internal control that should be considered for all companies, regardless of size or complexity. It helps to prevent fraud and errors by ensuring that no single individual has complete control over a transaction from start to finish. The responsibility for different aspects of a transaction should be spread across multiple employees to create a system of checks and balances. It is not the responsibility of the auditor to institute segregation of duties, but rather the management of the company. Saving labor costs by having employees take on multiple tasks is not the purpose of segregation of duties.

Segregation of Duties ________