As long as the same person deposits customer checks and records the deposits into the journal,there will be good internal control over cash receipts.

Question

Quizplus · Accepted Answer

This statement represents a lack of segregation of duties as it assumes that one person will handle both the receipt of cash and the record-keeping of the transaction. Good internal control requires that different individuals handle the different steps of cash receipts, ensuring an independent review and lowering the risk of errors or fraud.

As Long as the Same Person Deposits Customer Checks and Records