Vaughn 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 the above situation?
A)assignment of responsibilities
B)competent,reliable,and ethical personnel
C)separation of duties
D)documents

Question

Quizplus · Accepted Answer

This situation highlights the need for competent, reliable, and ethical personnel. Hiring an accountant with a previous embezzlement conviction means that the company has not adequately screened the person before hiring them. This internal control procedure should be addressed to prevent similar situations from occurring in the future. A thorough background check should be done before hiring any person, especially in a financially related position.

Vaughn Services Hires a New Accountant to Maintain Its Petty