Having one person receive all cash and a different person post to the Accounts Receivable account in the general ledger is an example of
A) inadequate internal control.
B) duplication of effort.
C) independent check of performance.
D) segregation of duties.

Question

Quizplus · Accepted Answer

This is an example of segregation of duties, a key principle of internal control that aims to reduce the risk of errors or fraud by dividing responsibilities among different individuals.

Having One Person Receive All Cash and a Different Person