Select the correct statement from the following:
A)General ledger employees should not have custody of any assets that they record in the general ledger.
B)General ledger employees should never be given responsibility for authorizing any journal vouchers.
C)General ledger employees should only record journal vouchers that have been authorized by the appropriate manager.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All the statements are correct as they describe best practices for maintaining segregation of duties and ensuring the integrity of financial records. Statement A prevents conflicts of interest and fraud. Statement B ensures that the authorization of transactions is separated from their recording, reducing the risk of unauthorized or incorrect entries. Statement C ensures that transactions are reviewed and approved by an appropriate authority before being recorded, which helps in maintaining accurate and reliable financial records.

Select the Correct Statement from the Following