The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
- The clerk in the accounting department records both purchases and payments of invoices.
A)Adheres to sound internal control procedures
B)Violates sound internal control procedures
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Having the same clerk record both purchases and payments of invoices violates sound internal control procedures because it does not ensure proper segregation of duties, which is essential to prevent errors or fraud.

The Following Set of Items Describes Activities Completed by a Company