Which of the following is incorrect concerning the segregation of duties within an organisation?
A) all accounting records can generally be kept by the same person
B) the various steps involved in executing a transaction should be separated.
C) The responsibility for executing a transaction, recording it and maintaining custody of resulting assets should be assigned to different individuals or departments
D) All of the above are correct statements.

Question

Quizplus · Accepted Answer

The statement in option A is incorrect because it suggests that all accounting records can be kept by the same person, which contradicts the principle of segregation of duties. Segregation of duties is a key internal control that helps prevent fraud and errors by ensuring that no single individual has control over all aspects of a financial transaction.

Which of the Following Is Incorrect Concerning the Segregation of Duties