An employee steals cash and makes a journal entry to cover up evidence of the theft. Which two duties should have been separated to prevent this problem?

Name: An employee steals cash and makes a journal entry to cover up evidence of the theft. Which two duties should have been separated to prevent this problem?
Brand: Quizplus
Rating: 5.0 (40 reviews)

Question

Quizplus · Accepted Answer

Separating custody and recording duties would prevent the same person from both handling cash and making journal entries, reducing the risk of theft and cover-up.

An Employee Steals Cash and Makes a Journal Entry to Cover