Having only one person authorized to both prepare and sign checks is a violation of what internal control procedure?
A) Proper authorizations
B) Independent review and appraisal
C) Independent verifications
D) Segregation of duties

Question

Quizplus · Accepted Answer

Segregation of duties is a fundamental internal control procedure that requires separating responsibilities for key financial transactions, such as authorizing, preparing, and signing checks. Allowing one person to both prepare and sign checks violates the principle of segregation of duties and increases the risk of fraud or errors.

Having Only One Person Authorized to Both Prepare and Sign