In a system of proper internal controls, the same employee should not be allowed to:
A)Sign checks and cancel the supporting voucher package
B)Receive goods and prepare the related receiving report
C)Prepare voucher packages and sign checks
D)Initiate purchase requisitions and inspect goods received

Question

Quizplus · Accepted Answer

In a system of proper internal controls, duties should be segregated to prevent any one individual from having control over all aspects of a financial transaction. Allowing the same employee to prepare voucher packages and sign checks would give them control over both the authorization and disbursement of funds, increasing the risk of fraud or errors.

In a System of Proper Internal Controls, the Same Employee