Which one of the following reflects a weak internal control system?
A) all employees are well supervised
B) a single employee is responsible for comparing a receiving report to an invoice
C) all employees must take their vacations
D) a single employee is responsible for collecting and recording of cash

Question

Quizplus · Accepted Answer

A single employee being responsible for collecting and recording of cash is a weak internal control system as it increases the risk of fraud or errors going undetected. It is always best to have segregation of duties and multiple employees involved in financial transactions to reduce the risk of errors and fraud. Option A talks about employee supervision, which is important but not necessarily indicative of a strong internal control system. Option B and C both suggest some level of segregation of duties and control but may not be sufficient on their own.

Which One of the Following Reflects a Weak Internal Control