Vaughan 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 this situation?
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 to be addressed in this situation is the employment of competent, reliable, and ethical personnel. Hiring an employee who has been previously convicted of embezzlement raises questions about their ethical standards and reliability, which could potentially compromise the integrity of the petty cash fund. Therefore, it is essential for companies to conduct background checks and verify the qualifications of their prospective employees to ensure that they possess the necessary competence and ethical conduct to perform their job duties.

Vaughan Services Hires a New Accountant to Maintain Its Petty