The bookkeeper who records cash receipts also deposits daily cash receipts at the bank on his way home from work.This is a violation of which of the following characteristics of good internal control:
A)requiring proper authorization
B)maintaining adequate documents and records
C)physically controlling assets and documents
D)separating incompatible duties

Question

Quizplus · Accepted Answer

The violation is of the principle of separating incompatible duties. The bookkeeper should not be responsible for both recording and depositing cash receipts, as this increases the risk of fraudulent activity or errors. Ideally, different employees should be responsible for these tasks.

The Bookkeeper Who Records Cash Receipts Also Deposits Daily Cash