Allowing the employee who authorizes purchases to also prepare the check is an example of good internal control.

Question

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Allowing the employee who authorizes purchases to also prepare the check creates a conflict of interest and increases the risk of fraud or abuse. It is best practice to separate the duties of authorization and payment to different individuals to ensure proper checks and balances. This is the principle of segregation of duties in internal control.

Allowing the Employee Who Authorizes Purchases to Also Prepare the Check