At Radiant Company,the sales department is also responsible for recording cash transactions as it does not have a separate accounting department.Which internal control procedure needs strengthening?
A) assignment of responsibilities
B) competent, reliable, and ethical personnel
C) separation of duties
D) documents

Question

Quizplus · Accepted Answer

The internal control procedure that needs strengthening is the separation of duties. As the sales department is responsible for both sales and cash transactions, there is a lack of segregation of duties. Separating duties can prevent fraud and errors from occurring as it requires multiple people to be involved in a transaction, reducing the chance of a single person having control over an entire process. Strengthening this internal control can provide increased transparency and accountability in the cash transaction process.

At Radiant Company,the Sales Department Is Also Responsible for Recording