Having only one person authorized to both prepare and sign checks is a violation of what internal control procedure?
A)Proper authorizations
B)Independent review and appraisal
C)Independent verification
D)Segregation of duties

Question

Quizplus · Accepted Answer

Segregation of duties is an internal control principle that involves separating tasks and responsibilities among different individuals to reduce the risk of errors or fraud. Having only one person authorized to prepare and sign checks violates this principle because it allows for the possibility of that person issuing a fraudulent check without detection or review by another person.

Having Only One Person Authorized to Both Prepare and Sign