A company employs three accounts payable clerks and one treasurer.Their responsibilities are as follows: Which of the following would indicate a weakness in the company's internal controls? $$\begin{array} { l l }
\underline { \text { Employee } } & { \underline { \text { Responsibility } } } \
\text { Clerk 1 } & \text { Reviews vendor invoices for proper signature approval. } \
\text { Clerk } 2 & \text { Enters vendor invoices into the accounting system and verifies } \
&\text { payment terms. } \
\text { Clerk } 3 & \text { Posts entered vendor invoices to the accounts payable ledger for } \
& \text { Payment and mails checks. } \
\text { Treasurer } &\text { Reviews the vendor invoices and signs each check. }
\end{array}$$

Question

A company employs three accounts payable clerks and one treasurer.Their responsibilities are as follows: Which of the following would indicate a weakness in the company's internal controls? $$\begin{array} { l l } 
\underline { \text { Employee } } &  { \underline { \text { Responsibility } } } \
\text { Clerk 1 } & \text { Reviews vendor invoices for proper signature approval. } \
\text { Clerk } 2 & \text { Enters vendor invoices into the accounting system and verifies } \
&\text { payment terms. } \
\text { Clerk } 3 & \text { Posts entered vendor invoices to the accounts payable ledger for } \
& \text { Payment and mails checks. } \
\text { Treasurer } &\text { Reviews the vendor invoices and signs each check. }
\end{array}$$

Quizplus · Accepted Answer

Clerk 3 mailing the checks after they have been signed is a weakness because it combines the duties of recording and custody, which should be segregated to prevent fraud or errors.

A Company Employs Three Accounts Payable Clerks and One Treasurer