For effective internal control in an organization, the treasurer should have custody of the cash, and the controller should account for the cash.

Question

Quizplus · Accepted Answer

This statement is in accordance with the segregation of duties principle, which helps to prevent fraud and errors. The treasurer is responsible for handling cash transactions, while the controller is responsible for record-keeping and financial reporting. This separation of duties enhances the reliability of financial information and reduces the risk of intentional or unintentional mishandling of cash.

For Effective Internal Control in an Organization, the Treasurer Should