A company has a policy that the accounting department personnel who keep records of inventory must never actually be the ones who have custody of the inventory. This is an example of which type of general accounting control?

Question

Quizplus · Accepted Answer

This policy is an example of segregation of duties, which is a control measure that involves separating responsibilities among different individuals to prevent potential fraud or errors. By having different individuals handle the records and custody of inventory, the company is reducing the risk of one person being able to manipulate or steal inventory without detection.

A Company Has a Policy That the Accounting Department Personnel