Match the action with the category of internal control procedures
-Segregation of duties
A)One department should check on another
B)Internal audit staff ensure all is working as intended
C)Accounting and cash collection is properly separated
D)Blank checks are locked at all times when not in use
E)Origination of initial entry into accounting system
F)Specific authority is given by management for the performance of activities.

Question

Quizplus · Accepted Answer

Segregation of duties is a key internal control that aims to reduce the risk of errors or fraud by dividing responsibilities among different individuals. In this context, separating the accounting and cash collection duties ensures that no single individual has control over all aspects of a financial transaction, thereby reducing the risk of misappropriation of assets or financial misstatement.

Match the Action with the Category of Internal Control Procedures