In the following situation, which internal control procedure needs strengthening? At Syria Services, the junior accountant collects checks and cash from customers and records the transactions into the journal. The controller approves the journal entries and bank reconciliations. The treasurer signs checks and approves contracts.
A)assignment of responsibilities
B)competent, reliable, and ethical personnel
C)separation of duties
D)documents

Question

Quizplus · Accepted Answer

Although there is some separation of duties in the given situation, it would be best to strengthen this control to limit the potential risk of fraud. One suggestion could be to add a second approval step before checks are signed by the treasurer. Additionally, utilizing different personnel for collecting cash and recording transactions could further enhance separation of duties.

In the Following Situation, Which Internal Control Procedure Needs Strengthening