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.
- A single employee in the mailroom opens the mail,counts the money received,and prepares a control list of the amount received.
A)Adheres to sound internal control procedures
B)Violates sound internal control procedures
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

This activity violates sound internal control procedures as one employee should not have access to opening the mail, counting the money received, and preparing the control list. This creates a lack of segregation of duties and increases the risk of fraud or error. Ideally, different employees should perform these activities to provide proper internal control.

The Following Set of Items Describes Activities Completed by a Company