Joe is a warehouse custodian and maintains the accounting record of the inventory held at the warehouse.An assessment of this situation indicates
A)documentation procedures are violated.
B)independent internal verification is violated.
C)segregation of duties is violated.
D)establishment of responsibility is violated.

Question

Joe is a warehouse custodian and maintains the accounting record of the inventory held at the warehouse.An assessment of this situation indicates 
A)documentation procedures are violated.
B)independent internal verification is violated.
C)segregation of duties is violated.
D)establishment of responsibility is violated.

Quizplus · Accepted Answer

Segregation of duties is violated because Joe is responsible for both maintaining the inventory records and the physical custody of the inventory, which should be separate roles to prevent fraud or errors.

Joe Is a Warehouse Custodian and Maintains the Accounting Record