Permitting warehouse staff to maintain the only inventory records violates separation of duties.

Question

Quizplus · Accepted Answer

Separation of duties is a fundamental internal control principle that requires different individuals to be responsible for different aspects of a process to prevent fraud, errors, and other irregularities. Allowing warehouse staff to maintain the inventory records poses a risk of errors, inaccuracies, and unauthorized actions that could compromise the reliability and integrity of the records. Therefore, it is advisable to assign the inventory management function to a different department or person who is independent from the warehouse staff.

Permitting Warehouse Staff to Maintain the Only Inventory Records Violates