Cadmia Services hires a new accountant to maintain its petty cash fund.Although the employee possesses an accounting degree,he/she had been previously convicted of embezzlement. Which internal control procedure needs to be addressed in the above situation?

Question

Quizplus · Accepted Answer

The internal control procedure of hiring competent, reliable, and ethical personnel needs to be addressed in this situation. The fact that the employee has a previous conviction of embezzlement suggests that they may not be reliable or ethical. This highlights the importance of conducting thorough background checks before making hiring decisions to ensure that the company employs trustworthy individuals. While other internal control procedures such as assignment of responsibilities, separation of duties, and documents are also important, they are not the primary concern in this situation.

Cadmia Services Hires a New Accountant to Maintain Its Petty