Indicate whether each of the following statements about separation of duties is true or false.
-When a company has achieved an effective separation of duties, collusion among employees would be required to commit theft or fraud and avoid detection

Question

Quizplus · Accepted Answer

Separation of duties is a key internal control that involves dividing responsibilities for a particular process or task among different people. When properly implemented, it ensures that no one person has complete control over a process or transaction, reducing the risk of errors or fraud. By separating duties among different employees, collusion becomes more difficult, as multiple people would need to work together to commit a fraud or theft and avoid detection. Therefore, the statement is true.

Indicate Whether Each of the Following Statements About Separation of Duties