The Director of Information Technology for the city of Tampa,Florida formed a company to sell computer supplies and software.All purchases made on behalf of the City were made from her company.She was later charged with fraud for overcharging the City,but was not convicted by a jury.The control issue in this case arose because the Director had both ________ and ________ duties.
A)custody;authorization
B)custody;recording
C)recording;authorization
D)management;custody

Question

Quizplus · Accepted Answer

The control issue in this case arose because the Director had both recording and authorization duties. As the Director of Information Technology, she was responsible for recording purchases made on behalf of the City, and as the owner of the company selling computer supplies and software, she had authority to make those purchases. This created a conflict of interest and allowed her to overcharge the City, which is why she was charged with fraud.

The Director of Information Technology for the City of Tampa,Florida