After learning that a single individual is responsible for managing all bank accounts and for authorizing and paying for all purchases, an appropriate action by a manager would be to
A)accuse the individual of mismanagement and fraud
B)recommend the segregation of duties so that one person reconciles the bank accounts, another authorizes purchases, and yet another processes payments
C)speak with the individual and ensure that all proper practices and procedures are followed
D)instruct the bank to mail statements to a secretary, who will then forward them to the individual for processing

Question

Quizplus · Accepted Answer

Segregation of duties is a key principle in internal control systems to reduce the risk of errors or fraud. By dividing responsibilities among different individuals, it ensures that no single person has control over all aspects of a financial transaction, thereby increasing accountability and reducing the risk of misuse of funds.

After Learning That a Single Individual Is Responsible for Managing