Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal?
A) Segregation of duties
B) Independent review and appraisal
C) Independent verifications
D) Proper authorizations

Question

Quizplus · Accepted Answer

The internal control procedure of segregation of duties is violated when the cashier at the checkout stand also records the daily receipts in the journal. Segregation of duties is a fundamental principle of internal control, which requires that different individuals be responsible for different aspects of a transaction or financial activity to reduce the risk of fraud or errors. In this case, the cashier should be responsible for handling the cash transactions, and someone else should be responsible for recording them in the journal to ensure an independent review and verification. The violation of segregation of duties can increase the risk of errors or fraud, as the same person has control over both the asset (cash) and the recording of the transaction.

Which Internal Control Procedure Is Violated When the Cashier at the Checkout