Compensating controls in the finance and investment cycle:
A)feature separation of duties by upper management.
B)feature involvement of two or more persons handling all important responsibilities.
C)include involvement by the external auditor.
D)include all the above.

Question

Quizplus · Accepted Answer

Compensating controls in the finance and investment cycle often involve the involvement of two or more persons in handling important responsibilities to ensure checks and balances, thereby reducing the risk of errors or fraud. This is a form of separation of duties, but specifically, the correct answer focuses on the involvement of multiple persons in responsibilities, which is a key aspect of internal controls.

Compensating Controls in the Finance and Investment Cycle